Cebu Landmasters Inc. (CLI), a prominent property developer in the Visayas and Mindanao (VisMin) region, is strategically expanding its footprint into Luzon following a strong financial performance in 2024. The company reported a record-high consolidated revenue of ₱19.5 billion, representing a 4% year-on-year increase, driven by sustained demand in its established southern markets.
Cebu Landmasters’ Chief Operating Officer Jose Franco B. Soberano (right), together with the company’s Chief Financial Officer Grant L. Cheng (left).
During a recent “FY 2024 Investors and Analysts Briefing,” key executives outlined CLI’s northward expansion strategy. Cebu Landmasters’ Chief Operating Officer Jose Franco B. Soberano announced the acquisition of land in Metro Manila for a forthcoming condominium project.
“We are in the process of finalizing the specific location for a vertical development within Metro Manila,” Mr. Soberano stated. Additionally, the company is exploring a horizontal housing development in Cavite, indicating a diversified approach to its Luzon ventures.
“Our Luzon expansion will encompass both vertical and horizontal projects, with specific details to be disclosed upon completion of strategic positioning,” he further stated. Cebu Landmasters Inc. had previously indicated its intention to enter the Luzon market by 2026, earmarking ₱ 12 billion for its initial projects in the region.
Despite prevailing concerns regarding a condominium oversupply in Metro Manila, Mr. Soberano expressed optimism, citing the Philippines’ growing population and economic expansion as key drivers for demand.
“We recognize the current challenges related to ready-for-occupancy units. However, we believe there is a significant opportunity for our pre-selling model, allowing buyers to invest over a medium-term horizon for future homeownership. We have the opportunity to bring a very competitive pre-selling product that allows a buyer to affordably invest over a five- to six-year horizon and plan for home ownership by that time,” he explained.
He further noted that the perceived oversupply is geographically concentrated, anticipating improved market sentiment in line with continued national growth.
Echoing this sentiment, Chief Financial Officer Grant L. Cheng clarified that Cebu Landmasters’ Luzon offerings will focus on the affordable housing segment. “Our strategy is not to compete within the high-end condominium market in Metro Manila,” Mr. Cheng affirmed, emphasizing the company’s focus on addressing broader market needs. “There are more than enough players to do that,” he stated.
As the company expands into Luzon, it will likely leverage the growing fintech landscape in the country to streamline transactions and enhance customer experience in areas such as online payments and digital financing options for prospective buyers. Underpinning this ambitious undertaking is Cebu Landmasters’ proven track record and deep understanding of regional markets, as evidenced by their strong 2024 performance in VisMin.
VisMin strength fuels growth: Income rise underscores deep regional understanding
The company’s 2024 financial results underscore its strong foundation in VisMin, with attributable net income increasing by 8% to ₱ 3.01 billion on revenues of ₱ 19.53 billion. This performance reflects Cebu Landmasters’ established understanding of regional market dynamics.
“Our strategic emphasis on comprehending and catering to local demand has been instrumental in our ability to efficiently manage inventory, achieving a 90.4% sell-through rate across all our markets in 2024,” Mr. Soberano informed investors and analysts.
This builds upon a 93% sell-through rate achieved on a 38,000-unit inventory in VisMin in 2023, which further improved in 2024 across a larger base of 40,000 units.
Mr. Cheng attributed this consistent sales performance to a data-driven methodology that enables CLI to identify areas with robust demand and significant housing deficits. “Our consistent ability to achieve strong sell-through rates, exemplified by the 90.4% in 2024, is a result of meticulous market research, allowing us to target areas with substantial demand and housing backlogs,” he stated.
He further emphasized the company’s strategic prioritization of addressing genuine market needs over mere land acquisition, a principle that will guide its expansion into Luzon. This approach prioritizes rapid capital conversion and benefits shareholders by focusing on underserved market segments, particularly the mid-market and economic housing sectors, represented by their Casa Mira and Garden Series brands, which accounted for 87% of total residential sales.
Cebu Landmasters to replicate regional success with strategic expansion in 2025
With nearly 90% of units sold, One Manresa Place signals high investor confidence in CLI’s Manresa Town in CDO — strategically integrated with Xavier University’s ‘Campus of the Future’ to drive long-term value and sustained demand.
With a robust project pipeline and sustained strong market demand, exemplified by the swift ₱ 4 billion in sales generated by the One Manresa Place launch in Cagayan de Oro within just two days, Cebu Landmasters is entering 2025 with considerable optimism.
Looking ahead, CLI’s strategic growth plans for 2025 and beyond include a significant emphasis on its Luzon expansion, while maintaining its strong presence in the VisMin market. Mr. Soberano reiterated the company’s intention to avoid direct competition in Metro Manila’s high-end condominium sector, instead focusing on leveraging its expertise in providing housing solutions for a broader demographic in regional centers, including its new ventures in Luzon.
The company will also leverage its successful township developments, such as the Davao Global Township, as a model for future projects. Both executives highlighted “location, value for money, efficient cost management, and reliable delivery” as key competitive advantages for Cebu Landmasters Inc., principles that will inform their strategy in the Luzon market.
The briefing also highlighted the growing contribution of Cebu Landmasters’ recurring income portfolio, with hospitality revenues jumping by an impressive 74% following the opening of Citadines Bacolod City, its fourth hotel.
With a robust project pipeline and sustained market demand, CLI is optimistic about its prospects for 2025, with plans to launch 10 to 12 new projects valued at ₱ 36 billion, further solidifying its position as a key driver of real estate growth across the Philippines, including its burgeoning presence in Luzon.
The company has ambitious plans to further expand its hospitality footprint to 10 hotels with over 1,900 rooms, a strategic move that could potentially pave the way for a future Real Estate Investment Trust (REIT) offering, promising enhanced value for investors.
The company is set to roll out between 10 to 12 new projects in the coming year, valued at ₱ 36 billion, further solidifying its position as a key driver of real estate growth not only in VisMin but also in its burgeoning presence in Luzon, directly addressing the housing needs of Filipino families.