Property developer Century Properties Group (CPG) announced on Tuesday that it has signed a joint venture agreement with Japan’s Mitsubishi Corp. to build the world’s first Forbes Media Tower in the Philippines.
CPG said that the 35-story office building, which will rise in Century City in Makati, will be
built through its subsidiary Century City Development Corp. (CDCC).
Both parties will develop, lease out and maintain Forbes Media Tower through Century City Development II Corp. (CCDCII), in which CCDC and Mitsubishi have 60 percent and 40 percent ownership, respectively.
CCDCII will finance the projected $100 million (P4.5 billion) total project cost through a combination of equity financing and loan facility.
The $51 million equity will come from CCDC and Mitsubishi while the $49-million 10-year senior loan will be granted by the Bank of Philippine Islands.
The loan was approved by BPI due to the “project’s strong financial viability amidst the rapidly growing office space sector and its confidence in the combined strength and experience of Century and Mitsubishi.”
Jose E.B. Antonio, CPGI chairman and president, said he was grateful and privileged for the opportunity to work on the project with Mitsubishi.
“We are grateful for their trust and confidence, as these are testament to our sound business strategy of developing projects with determined demand. Forbes Media Tower will be a stellar addition to the office market in our country’s premier financial district,” said Antonio
Mitsubishi senior vice president Nobuya Ichiki expressed the hope of strengthening their partnership with CPG to create more investments in the country.
“Mitsubishi has invested in two Philippine real estate development projects, one for industrial park and another for residence. This one will be the third development project and the first office development,” Ichiki said.
“Mitsubishi executes real estate development projects in Japan, China, United States, and the countries in Southeast Asia region. Among all countries, Mitsubishi believes the Philippines is a promising market due to its continuous high economic growth. We hope to continue and further strengthen our partnership with CPGI to expand real estate investment business in the Philippines,” he said.
The Forbes Media Tower will have a total gross floor area of approximately 95,000 square meters inclusive of parking. Net leasable area will be over 50,000 square meters.
The project is scheduled to be completed in 2019. It will be the last parcel of land to be developed within the Century City Township.
Other developments in the 3.4-hectare integrated mixed-use complex are residential high-rises such as the Gramercy, Knightsbridge, Milano Residences, Trump Tower, and Century Spire, the lifestyle center Century City Mall, and the outpatient medical center Centuria Medical Makati.
Century Properties’ commercial portfolio will total over 190,000 square meters within the next four years. This includes the five-level, 50,000-square meter Century City Mall and the 28-story Centuria, which has both for sale and for lease medical IT units.
Forbes Media Tower is one of the three Class-A commercial buildings that Century expects to add to its portfolio by 2019.