Century Properties allots P8 B for proj dev't

Posted at 03/10/14 9:04 AM

MANILA, Philippines - Real estate firm Century Properties Group Inc. is maintaining its aggressive capital expenditure program this year as it commits to spend P8 billion for project development, a company executive said.

The listed property developer of the Antonio family is expanding its retail and office portfolio to maximize the benefits of the strength in the real estate sector, said Century Properties co-chief operating officer Jose Marco Antonio.

Century Properties last week unveiled its plan to invest P8 billion in 2014, roughly the same level from a year ago.

“Our capital expenditures is going to be allocated towards the construction of ongoing projects,” said Century Properties co-chief operating officer Jose Marco Antonio said.

The capital requirements will be financed by a combination of equity from completed projects and developmental loans, the company executive said.

In particular, construction is ongoing for the nine-tower Azure Urban Resort Residences in Parañaque, the six-building Acqua Private Residences in Mandaluyong and the eight-tower Commonwealth by Century in Quezon City.

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Moving forward, Century Properties is looking at more mixed-use developments that will take advantage of the strength of the retail and office segments.

“We are masterplanning right now several large projects but probably the nearest to launch will be our project in San Fernando, Pampanga,” Antonio said.

“A lot of our future projects are going to be mixed-use in nature,” he said.

For instance, the eight-hectare property acquired last year from Pampanga-based House of David Realty and Development Corp. will be developed into a mixed-use project with a P6-billion residential segment for the middle income market, a hotel, some office buildings and a lifestyle retail concept.

“From our experience in Century City, there are really key synergies. The office, residential and the retail market feed off each other,” he said.

Century Properties targets its net income and pre-sales to reach a record P3 billion and P30 billion, respectively, by 2015 through the sale of existing inventory, unlaunched projects and leasing portfolio.

“Recurring income is strategically a conscious initiative on our part...Because we are developing things mixed-use nature, everything will have a recurring income component,” Antonio said.

The company aims to build 100,000 square meters (sqm.) of commercial space in the medium term. Recurring income projects of Century Properties include the 60,000-sqm. Forbes Media Tower and an office component in upscale residential project Century Spire, both in Makati, an office building in Fort Bonifacio and the P1-billion Century City Mall.

For hotels, the company will continue its collaboration with foreign brands as it introduces hotels and serviced apartments, Antonio said, adding that

the property firm would launch one hotel this year.

Outside of Metro Manila, Century Properties will launch a hotel project in Palawan as it looks at prospects in southern Philippines.

“So far, we are studying the likes of Cebu that has a lot of potential,” Antonio said.

“Residential sales are healthy, office [sector] continues to be buoyant. Right now, it’s finding the right properties to develop,” he said.

Reservation sales of Century Properties reached a new record of P24.6 billion last year, up 15 percent from P21.4 billion in 2012.

The property firm will launch at least P17 billion worth of new projects this year while completing the construction of existing developments.

In January to September 2013, the company’s net income grew 12 percent to P1.6 billion from P1.4 billion while consolidated revenues rose 12 percent to P8.1 billion.

With 28 years in the business of real estate development, marketing and property management, Century Properties has completed more than 20 condominium buildings, transforming 744,576 sqm. of space into premier residential and office developments in and outside Metro Manila.