Century Properties, Mitsubishi to spend P28B for affordable housing foray

By Arra B. Francia, Reporter
CENTURY Properties Group, Inc. (CPG) will be spending P28 billion alongside Japanese partner Mitsubishi Corp. for the rollout of 15 masterplanned communities catered toward the affordable housing market through their newly-incorporated firm.
The Antonio-led property developer formally launched its 60-40 joint venture with Mitsubishi called Phirst Park Homes, Inc. (PPHI) on Thursday night, a few months after both parties signed the partnership agreement for the venture.
Of the total capex, PPHI will be spending P11 billion over the next five years. PPHI President and Chief Executive Officer Ricky M. Celis said they currently have two models for the masterplanned developments they want to adapt.
“We have in our masterplan two models. One is the 20-hectare community which will be mostly residential. A portion of that will be for some mixed use to cater to the community itself. The other is what is called the township, that’s at least 100 hectares each and will be a combination of several uses,” Mr. Celis said in a press conference prior to the launching ceremony.
CPG Co-managing Director Jose Carlo R. Antonio said the first five locations they hope to secure will cover around 20 hectares, potentially located in Cavite, Laguna, Batangas, Bulacan, Pampanga, and the CALABARZON area.
“Currently we’ve acquired two and we’re looking to contract at least three by the first to second quarter of next year. So hopefully while the company’s still young, by June next year hopefully five out of that 15 will be secured already,” Mr. Antonio said during the press conference.
Mr. Celis said they will offer six to seven housing models under PPHI worth P1-6 million. The company’s target market includes first time home buyers and overseas Filipino workers with a combined monthly income of around P30,000 to P80,000.
Under the planned spending, PPHI looks to deliver 33,000 housing units with a sales value of around P57 billion.
The incorporation of PPHI came after CPG’s foray into the affordable housing segment in 2017, in a bid to diversify its portfolio to include affordable housing, leisure and tourism estates, and commercial leasing from its former focus on in-city development of high-rise condominiums for the mid- to high-income market.
CPG has already partnered with Mitsubishi for its first project under the affordable segment, namely Phirst Park Homes Tanza in Tanza, Cavite. The project will include 2,800 units, the first 600 of which will be completed by yearend.
“The Mitsubishi brand brings in a lot of the technologies as well so we know Japan to be at the forefront of technology so they bring a lot of that potential to assist in the building and of course their reputation in terms of balance sheet,” Mr. Antonio said.
The company also launched last June Phirst Park Homes Lipa in Lipa, Batangas which offers 1,867 units valued at P2.8 billion.
Shares in CPG went up by 2.33% or a centavo to close at 44 centavos each at the stock exchange on Friday.