CPG plans P3-B retail bond issuance

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CENTURY Properties Group, Inc. (CPG) plans to raise up to P3 billion from the issuance of retail bonds, it told the stock exchange on Wednesday.

The Antonio-led property developer on Wednesday said its board of directors gave the go signal for the company’s application for the public offering of unsecured fixed-rate retail bonds.

The listed firm will file the prospectus for the issuance at the Securities and Exchange Commission soon. It has yet to provide details on where the proceeds of the offering will be used.

CPG has recently partnered with Davao-based businessman Dennis A. Uy’s group to develop a 2.6-hectare property inside Clark Global City in Mabalacat, Pampanga. The two firms will be developing a mix of residential and office buildings with retail components in the following years.

The company primarily caters to middle income market through its high-rise condominium developments in Metro Manila, as well as office projects. It entered the affordable housing and leisure segment in 2017, in a bid to diversify its sources of income moving forward.

With this, CPG has been ramping up its affordable housing segment in the past two years. In May 2018, it partnered with Japan’s Mitsubishi Corp. for the establishment of Phirst Park Homes, Inc. (PPHI).

Under PPHI, CPG and Mitsubishi plans to spend around P10 billion over the next five years for the launch of 15 projects with about 33,000 units. Prior to Mitsubishi’s entry, CPG has already started work on two affordable housing projects carrying the Phirst Park Homes brand in Tanza, Cavite and Lipa, Batangas.

The investment on PPHI is expected to translate to P57 billion worth of sales in the next five years.

For the leisure segment, CPG is looking to generate about P13 billion in sales from the second phase of its Batulao Artscapes project in Nasugbu, Batangas.

Meanwhile, the company targets to book P1.5 billion in recurring revenues for its office, retail, and hospitality projects by 2020. CPG’s leasable spaces are expected to reach 350,000 square meters (sq.m.) by that point, from around 130,000 sq.m. in September 2018.

CPG’s net income attributable to the parent rose 13% to P608.56 million in the first nine months of 2018, following a 45% jump in gross revenues to P7.5 billion during the same period.

Shares in CPG ended flat at 48 centavos each at the Philippine Stock Exchange on Wednesday. — Arra B. Francia