Century Properties launches JV company with Mitsubishi

By Mark Louis F. Ferrolino
Special Features Writer
CENTURY PROPERTIES Group, Inc. (CPG) and Japanese conglomerate Mitsubishi Corp. launched last week the newly formed joint venture company PHirst Park Homes, Inc. (PPHI), which is set to introduce 15 masterplanned communities outside Metro Manila to cater to the first home buyer market.
PPHI is 60% owned by CPG and 40% owned by Mitsubishi. The two companies decided to form PPHI following strong demand for their first project, PHirst Park Homes Tanza in Cavite.
Ricky M. Celis, president and chief executive officer of PPHI, said the masterplanned communities, with a total of 33,000 units, will be rolled out within the next five years. The company is eyeing to launch at least one community this year.
“We’re hoping to get one or two roll out to give us a good head start for the year and to kick off the first few months of the company,” Mr. Celis said during PPHI’s launch.
Each community — 20 hectares in size — will offer 2,000 to 3,000 units, which are a combination of town homes and single attached models. Unit sizes start from 40 to 54 square meters, and are priced at P1 million to P6 million.
“It’s mostly residential but we always allocate a portion of it for some mixed uses essentially to cater to the community itself and by the joining community,” Mr. Celis said.
PPHI is also looking at developing township communities — at least 100 hectares in size — which would be a combination of several uses.
“Again, when opportunity presents itself,” Mr. Celis noted, adding that: “Century would have that capability with its history of putting together all the various asset bases in one area.”
The projects will be located in the Calabarzon and Central Luzon regions. In particular, the company is considering Cavite, Laguna, Batangas, Bulacan, and Pampanga first.
PPHI is targeting first home buyers for its projects, specifically those with a household income of around P30,000 to P80,000 monthly.
“Right now, based on our profile of the market, about 80% are within that range. In other words, we’re so far successfully targeting the primary target market,” Mr. Celis said.
The joint venture company is expected to make significant contributions in addressing the country’s estimated housing backlog of 6.6 million units.
Mr. Celis said about 40% to 50% of the 6.6 million units backlog is in the price range of the PPHI offerings.
PPHI is eyeing to expand in the Visayas and Mindanao once it has established technical and market scale. Prospective areas are Cebu, Bacolod, Iloilo, Cagayan de Oro, Davao, and General Santos City.
Jose Carlo R. Antonio, co-managing director of CPG and chairman of PPHI, said CPG is very grateful with the trust and support of Mitsubishi for the establishment of PPHI.
Mitsubishi will be bringing its expertise in development and technology, particularly in the construction of the communities.
“Now that they are investing directly into company such as PHirst Park Homes, it’s really a testament to their confidence in us and in our country. The direct investments, we believe, are starting to happen more, which very welcome for Century, for our country,” Mr. Antonio said.