Century Properties Group, Inc. said its diversification plan will enable it to double its value in the next couple of years.
Century Properties closed 2015 with a book value of P14.63 billion or a book value per share of P1.26.
“We are seeing a bigger company in the next couple of years,” said Jose EB Antonio, Century Properties chairman, adding the company intends to close a deal next month marking its entry into the horizontal economic housing segment.
The company said it is poised to deliver on all 31 pipeline condominium buildings in Metro Manila by 2020, comprised of 18,000 units and 1.34 million square meters of gross floor area.
This, coupled with the company’s ventures in office space, retail space, vertical residential development, and tourism and hospitality,will drive the company’s growth, noted Antonio.
“The way we look at it, we will have a four-legged table: our vertical (residential project); then we have our recurring income portfolio which will be office and retail; then we will have our economic housing, which is the third leg; then we will have leisure and tourism. We don’t rely on one segment for profitability,” he said.
For the long term, the company expects each “leg” to evenly contribute a quarter of its profit.
Antonio said the company expects to pour between P1 billion to P2 billion for the first economic housing development it will launch that will be concentrated in areas around Metro Manila.
“Our basic model is we buy at least 10 hectares,” said Antonio, noting the first horizontal housing project will turnover units with an average area of 40 sq.m. and sold between P1 million to 1.5 million per unit.
The project, when launched, will complement Century Properties’ current portfolio of residential and office projects.
Last year, Century Properties completed five condominiums with around 2,500 units that are 94 percent sold and worth P12.8 billion. This year, it expects to complete 15 more, located in Century City in Makati City, Azure in Parañaque City and Acqua in Mandaluyong City.
“The completions are a testament to Century’s sales volume growth over the years, resulting to a significant gain in market share,” the company said.
Colliers International earlier said Century Properties has the fastest selling projects among leading developers in the market. It has recorded one of the highest percentages of units sold among real estate developers in the Philippines for projects launched from 2011 to the second quarter of 2015.
The company also registered the second lowest unsold inventory relative to its peers, having pre-sold 91 percent of its inventory.
Century Properties also expects to complete the masterplan for its 146-hectare Batulao tourism project to complement its plan in the 833-hectare San Vicente, Palawan project announced earlier.
“We’re just waiting for the airport. Once the airport is finished, we’re going to launch our project,” said Antonio.
“In our 30-year history, we pride ourselves for our contributions to Manila’s landscape, having built high-quality iconic projects that cater to the luxury, middle income and affordable market segments,” he added.
Source: Malaya | July 26, 2016