CEBU Landmasters, Inc. (CLI) may enter the real estate investment trust (REIT) market within the next two to three years, the company’s chief finance officer (CFO) said.
“The timeline we’re looking at (is) probably the next two to three years,” CLI CFO Beauregard Grant L. Cheng said during the company’s annual stockholders meeting on Tuesday.
“The reason for this is because you need to establish a proper track record. You need to establish an operating history because a REIT is a recurring income play,” he added.
“We’ve been very transparent and open about our intentions to use the REIT vehicle to recycle capital back to CLI,” he also said.
CLI will integrate its various hospitality assets, as well as commercial and retail spaces, into the REIT.
“Because we are at an inflection point where the majority of these capital investments are starting to show operations from late last year, this year, and next year, this will be a crucial time when we essentially prove to ourselves in the market that we can deliver these steady reliable recurring income streams,” Mr. Cheng said.
“In order to deliver maximum shareholder value to CLI as the parent who will sponsor the REIT, we want to make sure that the assets that we will infuse into the REIT will have that operating track record in order to maximize the value from the market,” he added.
Meanwhile, CLI Chairman and Chief Executive Officer Jose R. Soberano III said the company is working to strengthen its presence in the high-end residential market led by the 38 Park Avenue residential condominium project in Cebu IT Park.
The company aims to launch a high-end residential development beside the 38 Park Avenue development this year or early next year.
It is also eyeing to launch its Pristina North development by the third quarter.
The company has earmarked P27.65 billion in 2024 for pipeline projects in areas such as Butuan, General Santos City, and its maiden project in Luzon.
On Tuesday, CLI shares fell by 6.03% or 17 centavos to P2.65 each. — Revin Mikhael D. Ochave
