Economic Performance

The business operations of Cebu Property Ventures and Development Corporation (CPVDC) consist of activities related to real estate planning, development, marketing and management. One hundred percent of the Company's capital is invested in Cebu, Philippines.

As a publicly-listed company, CPVDC seeks to deliver the results that will earn the trust and confidence of the Company's shareholders while it balances the economic value distributed back to the rest of its stakeholders.

The balance of the Company's economic performance does not rest solely on the finance division, nor on the Company’s profit centers. Accountabilities in terms of economic value generation and budget management are spread across all the teams in the value delivery chain and are reflected in the functional balanced scorecards of all divisions.

Economic Value Generation

CPVDC registered total revenues of P217.9 million, a decline from last year's P349.1 million primarily due to lower land sales. This is in line with the Company's strategy to shift from selling commercial lots to developing buildings to cater to Information Technology (IT), Information Technology Enabled Services (ITES) and Business Process Outsourcing (BPO) markets for recurring income. In 2009, its first BPO building, eBloc Tower, was completed and fully leased out in the last quarter of the year.

Real estate revenues derived from the sale of commercial lots at Asiatown I.T. Park amounted to P97.3 million, lower than the 2008 level of P233.6 million. In 2009, CPVDC sold only one lot to Asian iOffice Properties, Inc. (AiO), a 40 percent owned affiliate. Rental income, derived from eOffice One and The Walk, reached P72.8 million, slightly lower than the 2008 level of P74.5 million. Interest and other income stood at P41.5 million, slightly higher than last year’s P40.8 million. Equity in net earnings of AiO registered at P6.4 million. Net Income during the period reached P115.1 million, 35 percent lower than the previous year’s P176.0 million.

Economic Value Distribution

As a local company, the operations and activities generated direct impacts to the stakeholders particularly the employees, the local government, the suppliers and contractors, the shareholders, the neighboring communities and other external organizations.

Proportion of Spending on Locally-based Suppliers

CPVDC does not have a formal policy on purchasing from locally-based suppliers. However, the Company’s accreditation, bidding, purchasing and payment processes provide the system to track its locally-based expenditures to include project contracts. In 2009, 74 percent or P76,372,525.61 of the total amount disbursed were paid to suppliers and contractors based in Cebu.

Indirect Economic Impacts
The Company, being one of the drivers of Cebu’s development, has created indirect economic impacts in the area since its inception in the year 1990.

Property Value Appreciation

CPVDC's entry into the Cebu market started with the development of a 23-hectare property which was the former Lahug airport. The project was initially called the Cebu Civic and Trade Center (CCTC) launched in 1996 and was subsequently repositioned as an IT Park and renamed Asiatown I.T. Park in 2001.

In the mid-1990s, zonal value in and around the area was at P6,250 per square meter. To date, it is now at P25,000 per square meter.

Employment Generation

The workforce at Asiatown I.T. Park at yearend 2009 was recorded at 13,000 from over 6,000 in 2006.

The developments provide financial security to the community, which also feeds into the local economy as their earnings are spent in the locality.

Generation of Downstream Service Industry

Asiatown I.T. Park helped in boosting other service industries such as transport and food services for the employees in and around the developments, establishment of hotel buildings at the periphery, and long-term house or room rental services in the area to cater to the employees’ needs.