Century Properties Group, Inc. (CPG) will spend “around P5 billion” for its condominium projects this year, about P1 billion for new leasing assets, and will launch new affordable housing and tourism projects, the developer said in a disclosure to the Philippine Stock Exchange.
“For 2017, we plan to spend around P5 billion in our condominium projects and an additional P1 billion in leasing assets. We are also looking to start deploying capital for our affordable and tourism business later this year,” explained Kristina Garcia, head of CPG’s Investor Relations group.
In its disclosure, CPG explained that it has directed most of its business focus over the past three years on completing its high-rise residential developments, “in line with its plan to become a more diversified, multi-platform real estate company by 2020.”
From 33 launched buildings with gross floor area totaling 1.43 million square meters, CPG has already completed 16 buildings with gross floor area of 792,000 square meters as of year-end 2016, the company said.
“Our focus on turning over and completing our high-rise projects in Century City Makati, Azure Urban Resort Residences in Parañaque, Acqua Private Residences in Mandaluyong, and the Residences at Commonwealth, Quezon City is paying dividends, as evidenced by our cash balance of P3.34 billion as of year-end 2016. We turned cash flow positive from operations in 2016, and we envision this trend to continue in 2017. This places us in a stronger position to pursue diversification strategies,” Garcia said.
Among the ongoing high-end condominium projects CPG hopes to complete this year is the Century Spire in Makati, which features interior design by Giorgio Armani and Daniel Libeskind; and the Acqua Iguazu tower and the combined hotel-serviced residences Novotel Suites Manila in the Acqua Private Residences.
The Novotel project is part of CPG’s expansion into other real estate sectors. Saying that the company is optimistic about the prospects of the real estate industry and the general economy, the developer added, “While it continues to do in-city developments, it will likewise expand outside Metro Manila for affordable housing and leisure and tourism projects. The former is the company’s response to the country’s backlog of housing units, conservatively estimated at 3.5 million. The latter is to cater to the increasing number of foreign tourists and retirees into the country, as well as local tourists.”
In the affordable housing segment, the company launched its PHirst Park Homes brand in partnership with Mitsubishi Corporation at the beginning of this month, a project targeted at first-time homebuyers. The first development under the brand is slated for launch during this quarter, on a 26-hectare property in Tanza, Cavite.
The property will accommodate approximately 4,000 houses, the company said at the time of the signing of the joint venture in late November last year.
The affordable housing venture is CPG’s second partnership with Mitsubishi. The two companies earlier signed an agreement in September 2015 to develop the $100 million Forbes Media Tower in Century City.
Century also said it is scheduled to launch its first major leisure and tourism project in the latter part of 2017, but provided no additional details in its PSE disclosure.