CPG allots P3B for affordable housing projects

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Phirst Park Homes

By Arra B. Francia

CENTURY PROPERTIES Group, Inc. (CPG) will be spending at least P3 billion for affordable housing projects this year, as it continues to expand its offerings in the segment.

The board of directors of the Antonio-led property developer recently approved plans to issue unsecured fixed-rate retail bonds worth up to P3 billion within the year.

“The bonds will be issued this year, 2019. Proceeds will partially fund affordable housing projects and other corporate requirements,” a company representative said in a text message.

CPG said it will file the prospectus for the issuance at the Securities and Exchange Commission soon.

The listed firm catered to the middle-income market through its high-rise condominiums and office developments in Metro Manila. In 2017, it entered the affordable housing segment.

Since then, CPG has launched its affordable housing brand, Phirst Park Homes. For its first project, it offered about 3,000 units worth P2 billion on a 26-hectare property in Tanza, Cavite. It partnered with Japan’s Mitsubishi Corp. for the projects.

The company then unveiled Phirst Park Homes in Lipa, Batangas, a 20-hectare project that will offer 1,867 units.

The affordable housing projects target end-users, and offer a monthly amortization of as low as P9,000.

Following the launch of the two projects, CPG has formally established Phirst Park Homes, Inc., its joint venture project with Mitsubishi that will aim to launch 15 projects with about 33,000 units over the next five years. These projects worth P10 billion are expected to generate P57 billion in sales.

The company has also partnered with Global Gateway Development Corp. for a 2.6-hectare property inside Clark Global City in Mabalacat, Pampanga.

CPG earlier said that it wants the affordable housing segment to account for 35% of its total income.

Aside from affordable housing, the company has also diversified into the leisure property segment, with the second phase of its Batulao Artscapes project in Nasugbu, Batangas.

CPG is also banking on its office, retail, and hospitality projects to post recurring revenues of P1.5 billion starting in 2020. By then, the company’s leasable spaces are seen to reach 350,000 sq.m. from around 130,000 sq.m. in September 2018.

CPG’s net income attributable to the parent stood at P608.56 million in the first nine months of 2018, 13% higher year on year. Gross revenues, meanwhile, rose by 45% to P7.5 billion during the same period.