CPVDC net income up 4% to 73 million in 2011

CEBU, Philippines - Cebu Property Ventures Development Corporation (CPVDC), the developer of Cebu I.T. Park, formerly Asiatown I.T. Park, posted a four percent growth in its net income generating P73.3 million in 2011, which is a three year high since the onset of the financial crisis in 2009.

CPVDC president Francis O. Monera reported during the company’s recent stockholders’ meeting that despite the weakening US economy which threatened to pull-out offshore jobs, and the major earthquake that shook Japan, which was expected to cause a ripple effect on their local offices, CPVDC remained undaunted in the BPO industry posting P257.8 million revenues last year.

This is composed of retail income of P88.1 million from modular units at the eOffice and retail and dining destination — The Walk.

Adding to the 2011 income was the selling of a lot to affiliate, Asian i-Office Properties at P73.3 million, which will soon be the site of the third eBloc Tower.

“We will continue to be at the forefront of maximizing Cebu’s potential as a preferred IT hub, innovating spaces while contributing to the communities where we operate,” Monera said.

He added that the company is also on its continuous lookout for more opportunities to strengthen and expand the business, enhancing CPVDC’s value to stakeholders.

Monera further reported that the 2011 performance was also largely led by the rapid take-off of the BPO sector. This, combined with an overall positive outlook of stakeholders toward the current administration, helped increase the demand for major investment properties.

Seventy percent of Cebu’s BPO industry is located at the CPVDC’s 24-hectare Cebu IT Park facility.

These BPO, IT and IT-enabled services (ITES) generated over 23,000 jobs last year, as well as numerous support services and entrepreneurial opportunities.

High take up rates kept pace with supply in the office segment, maintaining healthy rentals while foreign investments and improved infrastructure fortified growth in rental rates and yields, he added.

“A hyperactive state of development transformed the current landscape with extensive constructions invigorated by emerging urban communities outside Metro Manila. With nine more constructions in 2011 bringing almost double the I.T. Park’s current gross floor area, employment is expected to increase by at least 20 percent in 2012,” said Monera.

The Philippines becoming a major force in the BPO industry was no accident, he said, adding that the country’s BPO sector has been growing at 23 percent in the last three years, higher than the global average of 15 percent.

More specifically, Cebu recorded an annual growth rate of 20 percent in 2011. Described as a sunshine industry, Monera expressed optimism that the BPO industry is poised to grow stronger in the years ahead.

With this affirmation, he said the company is confident of its continued growth.

“In fact, we have just acquired three additional hectares adjacent to our property which is already pegged for development within the next two years,” he announced. (FREEMAN)