Century Properties Group’s retail bonds get SEC go-ahead

CENTURY Properties Group, Inc. (CPG) has secured approval from the Securities and Exchange Commission (SEC) to issue up to P3 billion in fixed-rate retail bonds.
In a disclosure to the stock exchange on Friday, the Antonio-led property developer said the country’s corporate regulator has given the green light for its plan to issue P2 billion worth of bonds, with an oversubscription option of up to P1 billion.
The listed firm plans to use proceeds of the issuance to finance five affordable housing projects worth a total of P4.15 billion, as per the prospectus posted on its website.
The projects will be developed by Phirst Park Homes, Inc. (PPHI), its joint venture firm with Japan’s Mitsubishi Corp. that specializes in affordable housing projects.
The prospectus states that the projects are located in San Pablo, Laguna; Pandi, Bulacan; Calamba, Laguna; General Trias, Cavite; and San Fernando, Pampanga. These will be launched throughout the year, and are seen to be completed in 2022.
CPG said the five projects will deliver a total of 7,026 housing units across a total of 76.5 hectares.
The company said the remaining capex requirements will be funded by sales from these projects.
“Additionally, for the planned affordable housing developments of PPHI, equity capital calls from Mitsubishi Corporation as 40% shareholder shall be procured. To the extent more funding is needed, the project will procure project financing construction and contract to sell credit facilities,” the company said.
CPG tapped China Bank Capital Corp as issue manager, lead underwriter, and bookrunner for the offering.
The company will be spending P8-10 billion for its capital expenditures this year, to be used for residential and office projects as well as land acquisitions.
CPG reported a 72% increase in net income to P1.1 billion in 2018, against P650 million in the year before. Revenues also climbed 60% to P10.7 billion. The company previously focused on high-rise residential projects, but has diversified to more affordable housing and commercial leasing projects since 2017.
Aside from the affordable residential projects to be launched this year, CPG will also unveil four office buildings in line with its target to have 32 office and commercial buildings by 2021.
Shares in CPG dropped 1.79% or a centavo to close at 55 centavos each at the stock exchange on Friday. — Arra B. Francia