CPG buys out Japanese partner in housing JV

MANILA, Philippines - The Antonio Group’s Century Properties Group (CPG) has acquired the shares of its partner Mitsubishi Corp. in their joint venture PHirst Park Homes Inc. (PPHI) and Tanza Properties Inc. (TPI).

CPG’s board of directors approved the acquisition of the 40 percent stake of Mitsubishi in PPHI – amounting to P1.32 billion – giving the real estate company full ownership of the business unit.

Mitsubishi, for its part, would “redirect its focus to other market opportunities in both the Philippines and the Asian region.”

But CPG and Mitsubishi would still “be exploring new asset classes in real estate to co-invest in.”

“This acquisition is part of the group’s strategic move to consolidate interests in the business segment where the market is robust, allowing us to create more value for our stakeholders, contribute more to serving the needs of our fellow Filipinos for decent, quality and affordable first homes while helping address the huge housing backlog that the administration is working on,” said CPG executive chairman and Amb. Jose Antonio.

Mitsubishi executive vice president and group CEO for Urban Development Group Takuya Kuga said PPHI has expanded to become one of Mitsubishi’s core businesses in the real estate market in the Philippines.

“The great outcome that we initially projected to achieve in 10 years’ time has been substantially realized within five years. As Mitsubishi has already achieved its optimal goal for this particular investment, we believe that it is the ideal opportunity to pursue new seeds of growth in other emerging markets both in the Philippines and the Asian region.”

Launched in 2017 as an affordable housing brand, PPHI is on track to launch 15 projects it set out to do with Mitsubishi five years ago.

CPG also announced  its expansion into other markets, with ventures in the socialized and economic housing, and mid-income residential markets under subsidiary Century PHirst Corp. (CPC).

CPC has proceeded with the opening of three flagship projects: PHirst Sights Bay in Bay, Laguna, its ticket into the socialized and economic housing segment; PHirst Editions Batulao, in Nasugbu, Batangas, its maiden mid-income development, and PHirst Centrale Hermosa, its first mixed-use township located in Hermosa, Bataan.

Moving forward, CPG president and CEO Marco Antonio said the group remains cognizant of the strong fundamentals of the affordable housing market.

“The housing backlog continues to be a reality, which has caused us to fare well despite macro-economic headwinds. Century Properties is committed to meeting the housing needs of first-time homebuyers and will continue to explore opportunities to expand its portfolio,” he said.