Developer Arthaland Corp. (ALCO) is set to turn over the first 15 levels of its Cebu Exchange project to clients by the fourth quarter of 2020. The pandemic caused construction projects to halt due to quarantine measures, Arthaland Vice-Chairman and President Jaime C. Gonzalez said the company has made a substantial effort in its projects to follow delivery targets as previously set.
Gonzalez told stockholders in an online meeting last June 26. “Phase 1 of Cebu Exchange, which is up to level 15 out of the total 38 floors, is expected to start handover to buyers by the early fourth quarter of this year,”
“We’ve retained project target delivery dates despite work stoppage because we have built in sufficient flexibility in our timelines and because we have chosen to work with top-tier contractors,” he added.
Cebu Exchange is plugged as a “green office building” settled in Cebu I.T. Park, Cebu City. It is Arthaland’s first venture in the southern part of the Philippines and is seen to entice business process outsourcing locators in the region.
The completion of Cebu Exchange, along with Arthaland’s other large projects, namely Savya Financial Center in Taguig City and Sevina Park in Laguna, is seen to help the company’s finances throughout the pandemic.
“We note about 88% of the growth strategy of our Five-Times-in-Five-Years plan is already accounted for by Cebu Exchange, Savya, and Sevina Park. Given the current status of these projects, we have high confidence that Arthaland will achieve the growth target as planned,” Gonzalez said.
Gonzalez said even with the pandemic, the company believes it will meet this target, considering the success of fundraising activities prior to the pandemic. “Arthaland raised a total of P5 billion which will provide substantially all the liquidity required for Arthaland’s projects in the near term,” he said.
“The recurring income of the company is more than sufficient to cover our operating costs, and we are quite happy about it. Over time, we expect that our recurring revenues will increase substantially,” he also said. Source..
The company booked a net income of P10.34 million in the first quarter, down 95% from a year ago, despite revenue growth of 24% to P577.21 million. The increase in the top line was due to revenue recognition from new office projects, while the bottom line decline was attributed to operational disruption and lower sales engagements and bookings due to the lockdown.
Arthaland Corporation is listed in the Philippine Stock Exchange as $ALCO as of June 26, 2020, 03:30:00 PM its last traded price was PHP 0.55 +3.77% higher than its previous close with 780K day value traded.
-Stockbytes PH, June 29, 2020
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