LISTED Century Properties Group Inc. has partnered with Mitsubishi Corporation to develop its first affordable housing project in line with its aim to diversify its business.
In a statement on Thursday, Century Properties said that the partnership with Mitsubishi is set to develop a 26-hectare property in Tanza, Cavite which is expected to yield 4,000 horizontal housing units.
It said the upcoming project will target first-time homebuyers in high growth areas in the peripheries of Metro Manila.
“We are currently pursuing more fervently new projects in the first homebuyer market. We will proceed with the same amount of prudence, opportunism, and progressive mentality that we have always employed,” Century Properties chairman and chief executive officer Jose EB. Antonio said.
“We will deliver projects that are expected to offer reliable returns in reasonable payback periods. These and a few other initiatives will steer the company towards long-term growth and profitability, which can ride the peaks and troughs of real estate cycles,” Antonio added.
Century Properties noted that the upcoming project seeks to address the strong demand in the affordable segment, which comprises a significant share in the housing backlog of 5.56 million for 2016.
Takuya Kuga, Mitsubishi Corporation’s division chief operating officer for real estate business, also noted the growing demand for housing from the country’s rapidly expanding middle class.
“I know that with the economic growth, people in middle income class of the Philippines are drastically expanding. On the other hand, I also heard that housing supply for this rising middle class does not catch up with the big demand and this is one of the biggest social problems in the Philippines,” Kuga said.
“We in Mitsubishi wish not only to catch this big business opportunity but also to contribute to the improvement of the living environment in the Philippines together with Century Properties,” Kuga added.
Last year, Century Properties’ wholly-owned subsidiary, Century City Development II Corporation, signed a joint venture agreement with Mitsubishi Corporation to develop, lease out, and maintain the world’s first Forbes-branded commercial building.
Century Properties posted a 49.8 percent decline in its net income in the first nine months of 2016 to P649 million from P129 billion in the previous year due to lower real estate sales as a result of fewer project launches.