Listed Century Properties Group Inc. announced on Thursday it has secured a term loan facility through Standard Chartered Bank to partly fund the construction of its first hotel development.
In a disclosure posted on the PSE website, the firm said that the term loan facility will partly fund the sixth tower of its recently launched project, the Acqua Private Residences in Mandaluyong City, which will feature a hybrid of residential units and hotel suites, and offer preferred shares as fractional ownership of hotel units.
The company did not give a figure for the amount of the loan.
The Novotel Suites Manila is Century’s first hotel development in partnership with AccorHotels and will be located at Acqua.
The company noted that this is Century’s third facility arranged by Standard Chartered. The first was a dual-currency secured term loan of P4.2 billion in 2013, which matures in 2018, and the second, bilateral facility of P500 million, which was fully-paid in 2015.
“With the new facility, Century has further financial flexibility to embark on a growth opportunity that is expected to enhance shareholder value. It also helps free up corporate lines for other new projects,” Said Century.
The company also said that since it went public in 2010, its growth has been strengthened by its strong banking relationships.
“We thank Standard Chartered for their continued support of Century Properties. This is another milestone for Century and is a testament to the track record of raising finance over the years and lowering our weighted average costs,” said Carlo Antonio, Century’s Chief Financial Officer.
For its part, Standard Chartered also expressed its optimism for the strong partnership.
Juan Carlos L. Syquia, Standard Chartered’s Corporate and Institutional Clients Head said, “Standard Chartered Bank is pleased to once more partner with Century Properties Group, Inc. for its latest development, the Acqua 6 Tower under Acqua Private Residences project. Acqua 6 is the initial foray of CPG in the hotel development space that introduces an innovative and affordable residential ownership concept. Acqua 6 reinforces CPG’s vision of enhancing the overall quality of life for Filipinos.”
Acqua 6 is the final tower to be launched at the 2.4-hectare property. Niagara, the first tower, has been completed and is currently undergoing unit turnover. The second tower, Sutherland, is scheduled for turnover this year. Two additional towers, Dettifoss and Livingstone, will be completed next year and the fifth tower, Iguazu, will be completed in 2018.