Century Properties sets P12-B spend plan

MANILA, Philippines - Real estate firm Century Properties Group Inc. is spending more than P12 billion in the next five years to fund the construction of numerous residential towers in masterplanned developments in Metro Manila’s key growth areas.

The listed property firm of the Antonio family aims to improve its market share in the luxury and middle-income segment while diversifying in the affordable sector amid an ongoing property boom, the company said.

In a filing with the Securities and Exchange Commission, Century Properties said it allotted P4.46 billion for residential and commercial projects in 2014-2016. Bulk of development would be funded by proceeds from the company’s P3 billion maiden bond offering.

Specifically, funding would cover the residential projects in Azure Urban Resort Residences in Parañaque (Boracay and Bahamas towers), The Residences at Commonwealth (Roxas West, Quirino West and Quezon South) and Century City (Century Spire).

Also up for development are several commercial projects like the Fort Bonifacio office tower, and the lease components of Century Spire and the Forbes Media Makati office tower.

“In total, the projects include over 3,250 residential units, and about 90,000 square meters (sqm.) of commercial space for lease,” Century Properties said.

Century Properties would disburse P188 million in the second half of 2014, P1.39 billion in 2015 and P2.83 billion in 2016.

“To complete the capital expenditure requirements of these projects, the company requires an additional P7.9 billion from 2017 to 2019, which the company is expecting to fund from net collection of receivables of units already sold, including turnover balances,” Century Properties said.

“Any shortfall may be supplemented by drawdowns from credit facilities, and internally generated cash,” it added.

The listed real estate firm said it will complete the construction of 31 buildings covering roughly 1.67 million sqm. in the next five years to cater to strong demand in the property sector.

In the long run, Century Properties said it plans to maintain leadership in the luxury and middle-income segments while diversifying into the affordable market.

The company said it would also “diversify into commercial leasing developments to generate recurring and predictable income.”

In its 28-year history in the business of real estate development, marketing and property management, Century Properties has completed 25 condominium buildings totaling 873,127 sqm. composed of 8,777 units.

In the first quarter, earnings of Century Properties inched up 2.49 percent to P513.06 million from P500.55 million. Consolidated revenues rose by a 10th to P2.85 billion from P2.6 billion as revenues from real estate sales climbed eight percent to P2.39 billion from P2.21 billion last year.

It is the company behind projects like the Essensa East Forbes in Bonifacio Global City; and the Trump Tower, Gramercy Residences, The Milano Residences and Knightsbridge Residences in its masterplanned Makati development, Century City; and the Acqua Private Residences in Mandaluyong City.