CPVDC ties projects to state of economy

By Ehda M. Dagooc Updated May 01, 2009 12:00 AM

CEBU, Philippines – Although Cebu still provides a promising outlook for Business Process Outsourcing (BPO) investments, premier cyberpark developer Cebu Property Ventures and Development Corporation (CPVDC) ties future projects on the progress of the global economy.

Publicly listed CPVDC, the developer of the 24-hectare Asiatown IT Park in Cebu, posted a total revenue of P349 million last year, which was six percent lower compared to 2007 revenues at P371 million.

The decline was, however, attributed to the limited availability of lots for sale.

CPVDC president Francis O. Monera said the company closely monitors the global economy as fragility will also affect the movement of the investors’ interest.

He said although Asiatown IT Park continues to receive inquiries for office spaces and investors’ intention to put up facilities at the cyberpark, the company’s appetite to build more buildings for lease and rental will largely depend on the economic progress globally.

“We are closely calibrating the market,” Monera said adding that the company has readied the masterplan of the five-hectare undeveloped property within the Park, and the two-hectare super-block that is located in the center of the property.

Part of the plan is to build a BPO enclave facility within the five-hectare remaining property however, no exact timetable is at hand. Monera said as the total lot area available at the IT Park is getting smaller, the company is also on constant lookout for attractive parcel to take advantage of the robust BPO sector.

In his report, during the CPVDC Stockholders Meeting held the other day at the Cebu City Marriott Hotel, Monera said that in 2008, the company continued to maintain a strong asset base, with total assets reaching P1.35 million. Cash and cash equivalents amounted to P435.8 million, increasing by 32 percent from the previous level.

“Despite the current global economic woes, the BPO industry is considered as one of the sunshine industries of the country. Although business outlook in general may not be as rosy as in previous years, investors are still bullish on the IT-related industries, particularly BPOs,” Monera reported.

He said being pioneer in the ICT industry, CPVDC is in an optimum position to remain strong “and even flourish despite the global crisis.”

Monera said the remaining undeveloped land within the cyberpark will be the company’s major source of growth in office leasing revenues as CPVDC turns its strategy towards building offices to cater to more IT and IT-enabled service locators while keeping ownership of the land for future value appreciation.

Its newest building called eBloc Tower, which was completed last year, is now getting considerable interest from the probable tenants market.

This 12-story office condominium is the maiden project of Asia I-Office Properties, as special purpose vehicle created with the partnership between CPVDC and Ayala Land Inc. (ALI) Corporate Business Group.

This mid-rise office condominium provides an additional 21,000 square meters of office leasable space and 1,700 square meters of retail space.

The eBloc Tower is envisioned to meet the needs of the occupants by providing them round-the-clock services and facilities suited to the needs of IT and IT enabled firms.