CENTURY Properties Group, Inc. (CPG) is targeting to more than double its commercial leasing portfolio this year.

The Antonio-led property developer listed 30 million preferred shares on the Philippine Stock Exchange (PSE) on Friday, raising P3 billion from the follow-on offering that was twice oversubscribed.

After the listing ceremony at the PSE Tower, CPG President and Chief Executive Officer Jose Marco R. Antonio told reporters that the proceeds from the offering will be used for the expansion of its commercial leasing portfolio.

“The (preferred shares) are going to be primarily used for… both development and capex (capital expenditure) requirements of our expanded commercial leasing portfolio,” he said.

Mr. Antonio noted that this year he expects the commercial leasing portfolio to more than double, which will help boost revenues.

Among the projects that CPG plans to complete this year are the 95,000-sq.m. Century Diamond Tower in Century City, Makati and 39,000-sq.m. Novotel Suites Manila at Acqua Private Residences, Mandaluyong.

“This year, it will be around P2 billion in terms of revenues. In terms of leasable space, that should probably more than double,” he said.

CPG’s revenues from its commercial leasing business grew 41.67% to P404.07 in the nine months ending September, recording the biggest growth among its business segments.

The company currently has 120,000 square meters (sq.m.) of leasable space, mainly from the Asian Century Center (co-owned by Columbian Group of Companies) in Fort Bonifacio, Century City Mall in Makati, 160 medical suites in Centuria Medical Makati, and the Pacific Star Low Rise Building, where it owns 50%.

Mr. Antonio said there is strong demand for office space, which will provide a source of recurring income, predictable cash flows and longer-term tenants.

“It will (also) allow the company to have a balanced contribution not just from pre-sales but also recurring income assets,” he said.

The company is targeting to raise the consolidated net income contribution of its commercial leasing business to 30% in three years from 5% at present.

This is part of transforming its revenue mix in three to five years to 40% from residential condominiums (from 85% at present), 30% from affordable housing (from 10%); and 30% from commercial leasing (from 5%).

“This year, we still expect our main revenue drivers to be our condo projects. We currently have around P26 billion unbooked revenue and around P16-18 billion of unsold for our condo markets,” Mr. Antonio said.

“The contribution of affordable housing is accelerating; what was once coming from very negligible numbers is up to 10-11%. That should further rise to mid-double digits. Then leasing, coming from 5% now, should be closer to more than 10% this year,” he added, referring to revenue prospects for 2020.

CPG is allocating P30 billion for capital expenditures through 2022 to finance its expansion plans across business segments.

Shares in CPG closed at P0.56 each, up 2 centavos or 3.7%. — Denise A.Valdez