CPG allots P8 to P10 billion for capital spending

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By Vincent Mariel P. Galang, Reporter

CENTURY Properties Group, Inc. (CPG) said it is allotting between P8 to P10 billion this year for capital expenditures, which will be used for its residential and office projects and land acquisitions.

“Actually, we see the market right now very, very bullish… for everything across-the-board. We’re just trying to tweak our business plan to become more efficient,” Marco R. Antonio, chief operating officer of CPG, said during a briefing at Century City Mall in Makati City on Tuesday.

The capex will be sourced from internal funds, as well as the company’s retail bonds which are up for approval by the Securities and Exchange Commission on March 26.

This comes after CPG reported its net income surged 72% to P1.1 billion in 2018 from P650 million in the year prior. Revenues jumped 60% to P10.7 billion in 2018, on the back of the completion of three residential buildings, an office tower, and 259 affordable housing units.

“For our bottomline… income surged (over) 70% from P650 million in 2017 to P1.1 billion full year 2018. Prior, we’ve had several years of over a billion but maybe in the past three years this is probably I guess to return above P1 billion, so it’s a very much positive sign that our strategy of diversification is starting to bear fruit,” Mr. Antonio said.

Known for its high-rise residential projects, CPG has in recent years diversified into affordable housing and commercial leasing.

This year, the company is looking to expand its affordable housing projects through its joint venture company with Japan’s Mistubishi Corp. Last week, it launched PHirst Park Homes community in San Pablo, Laguna.

“We’re looking to launch one per quarter, that’s our target. If not, we’re still looking to launch four by the end of the year,” Mr. Antonio said. “This year, it will be [more in the South], but next year we’re planning to do a lot of North.”

Also, Mr. Antonio said CPG is looking into building low-rise condominiums and townhouses.

“It’s going to be a healthy split between in-city, of course we have residential condo, which we plan to have probably 20% to 30% of our sales. We’re also thinking of doing projects that are going to be low-rise in nature that will allow the company to do quicker cash cycles, quicker return on investments and also quicker delivery to the end-user buyer,” he said.

Out of its target to have 32 office and commercial buildings by 2021, CPG is planning to add four more to its current portfolio of 24 this year.

“We finished ACC [Asian Century Center] last year. This year we will finish Century Diamond, and then end of next year we’re targeting the completion of Century Spire,” he explained.

Asian Century Center is a commercial building in Fort Bonifacio with net leasable area of 30,000 square meters (sq.m.) finished last year, while Century Spire is located within Century City and due for completion next year. On the other hand, Century Diamond Tower in Makati City is a project with Mitsubishi Corp.

In addition to this, CPG said its partnership with Global Gateway Development Corp. (GDCC) for a 2.6 hectare residential and office development in Clark is undergoing masterplanning stage and is targeted to start development by end of 2019.

“I think what’s happening is that the growth is not just happening in Metro Manila but nationwide, so given that people everywhere are sharing in the prosperity and growth. Because of that not only are we seeing demand from Metro Manila because… of the price differential and people being able to get more space outside of Metro Manila, but also the strength of the local market,” Mr. Antonio said.

Shares in CPG went up by 5.05% or P0.025 to P0.52 apiece on Tuesday.