01:03.0
So, what are your priority projects in the pipeline?
01:05.5
You're known mostly as a Visman developer, one of the biggest in the country.
01:09.5
But about two, three weeks ago, we did speak to your CFO, Grant, and he did say that you guys are looking to enter the Luzon market.
01:18.9
Yes. In fact, we are putting up our office in Makati.
01:25.2
there more often.
01:26.8
Luzon is our natural progression for us.
01:29.8
The Visman market is still very ripe.
01:32.6
It's still undertapped.
01:34.6
But we feel like we want to create more awareness about Cebu Landmasters and the great things we're doing in Luzon.
01:41.3
We have a very generous type of housing development and we want our friends in Luzon to experience that as well.
01:48.5
Okay. Can you give us more details on what project in Luzon you're going to be working on, what we can expect from you soon?
01:56.3
You did say Palawan earlier.
01:58.5
Yes. We consider Palawan as really part of Calabar Zone.
02:03.7
But mainland Luzon, we're looking at Cavite.
02:06.9
We've been looking at Kamsur.
02:09.1
And even some key areas in Metro Manila are being considered.
02:13.3
I cannot disclose too much but we'll definitely be there soon.
02:17.5
And by soon, is that going to happen within the year?
02:20.7
Yes. Within the year, we've been disclosing to the public that
02:24.5
we intend to acquire some properties in Luzon this year.
02:27.7
So I've been flying to Manila a lot the past few months so it's definitely going to happen.
02:33.7
And what can we expect from your Luzon foray?
02:36.7
Is this mostly going to be high-rise residential projects or more of your mixed use with retail and hotel?
02:43.9
We want to start with our housing.
02:47.1
Housing is our bread and butter.
02:49.1
We've been doing housing since 2003.
02:51.3
So our entry point would be, I would say,
02:54.5
Islamic to mid-market housing.
02:56.7
However, there's a lot of interest in CLI.
03:01.9
There are several land owners in Manila asking us to look at their prime Metro Manila property.
03:07.1
So we are also not closing our doors to vertical development in Metro Manila.
03:12.3
As you know, in BISMIN, we've done everything from vertical to offices to hotels.
03:18.5
So we're ready. We're ready to take on the challenge in Luzon.
03:23.3
It seems like you are going to be very, very busy.
03:27.5
But when you think about the industry in general, the real estate market, what are you seeing?
03:32.7
What's the experience on the ground when it comes to...
03:35.9
You know, everybody's talking about higher interest rates, soaring inflation, very sticky.
03:41.1
So the cost of goods, even, you know, the minimum wage increase that we're all talking about,
03:47.3
it's going to impact your industry, huh?
03:50.3
Well, there have always been heads-up.
03:53.3
There have always been headwinds, Mimi.
03:55.5
In real estate, there are a lot of challenges thrown at the developer.
04:00.7
But if you look at our numbers, we've grown every year since our IPO before then.
04:06.9
Because fundamentally, really, I keep repeating this, there is a lack of supply in residential development
04:15.1
and there's increasing demand.
04:17.3
I would say, if you let the numbers settle down, right?
04:23.3
We actually have a very strong employment rate.
04:26.5
There is really low unemployment, meaning you have a workforce that's earning,
04:31.7
that workforce that's emerging into the middle class and ready to purchase their first home.
04:37.9
And you still have a very strong overseas Filipino market that's really looking to invest in the Philippines.
04:45.1
I would say residential market, especially in the middle market and affordable segment,
04:51.3
is really our silver lining.
04:54.5
In the first quarter, we sold more than 5 billion of real estate in the first quarter alone.
05:01.7
More than the previous year.
05:03.9
So, for us, at least in CLI, we see a lot of positive indicators for us.
05:11.1
And that is going to push us forward up to the rest of the year.
05:16.3
Have you had to raise prices significantly just to cope with higher cost of raw materials,
05:22.3
higher cost of labor, higher cost of financing?
05:25.5
I would say, from before pandemic to today, let's say prices have increased at least 10% to at most 20%.
05:36.7
So, it's the job of the developer to make sure how can my unit still be accessible and attainable.
05:43.9
Now, we give really nice terms.
05:46.5
We allow them to pay down payment over four years, sometimes at five years.
05:52.3
So, it's about the developer also finding a way to make it easier for the buyer.
05:57.5
And I think that's where CLI is so natural for us to make adjustments right away.
06:02.5
We don't sit on it for a few months.
06:05.7
We tackle it overnight, these adjustments.
06:09.7
That's how we try to do things at Cebu Landmasters.
06:13.9
And it helps that you're very close to the big boss, your dad.
06:17.5
I wonder, you did say that Cebu Landmasters started back in 2003.
06:22.3
Which makes the company 21 years old this year, legal.
06:28.3
And you guys listed in 2017, which means you're about seven, eight years listed company already.
06:36.3
What is Franco Soberano's CLI story?
06:39.5
Do you remember how this all started with your dad?
06:42.3
On a more personal note.
06:43.5
Yeah, I was actually working in a multinational.
06:48.3
And I saw how real estate was really good.
06:52.3
And it was really impacting lives in a very positive way.
06:55.3
We were about to launch our first condominium in 2009.
06:58.3
And I saw, wow, in a condo project, we can hire 500 to 1,000 construction workers at the very least.
07:04.3
We support more than 30 suppliers.
07:07.3
And then I was sold.
07:09.3
I was not really heavily recruited by my father.
07:12.3
But I was very impressed with the way he handled things.
07:15.3
And I joined him back then.
07:17.3
And my story, really a story of...
07:22.3
I would say a second generation real estate developer that wanted to professionalize the business.
07:28.3
And saw eye to eye with the founder.
07:30.3
And it's really like that.
07:32.3
It's us working as a second generation, staying humble, staying hungry at the same time.
07:39.3
And seeing eye to eye with our first generation of the business.
07:42.3
And we have a very united family.
07:45.3
We're only five family members in the business.
07:48.3
But we are 900 employees already.
07:50.1
So we're very thankful that it's worked out so far very well.
07:56.1
And what do you say to shareholders who are still waiting for the share price to pop?
08:02.1
I would say we're very due.
08:05.1
We reported record results.
08:08.1
We're on track to have another banner year on our 21st year or our legal year as Mimi has put it.
08:17.1
Yeah, I mean, there's a lot to be excited about.
08:20.9
Our value is getting more obvious as each day passes by.
08:24.9
So I'd like to thank you for your loyalty.
08:27.9
Thank you for your patience.
08:28.9
But we're definitely due for that pop.
08:31.9
We're looking forward to celebrate that pop with you.
08:34.9
Thank you so much, Franco, for joining us.
08:36.9
Always a pleasure to speak with you.
08:37.9
And thank you for sharing some inside stories about CLI.
08:42.9
Thank you always for the support.
