MANILA – Century Properties Group Inc has struck a deal to acquire a stake in the low-rise building of the Pacific Star development in Makati City to boost recurring income.
In a statement, the property company of former ambassador Jose EB Antonio said the purchase of a 50 percent interest in the owner of the low-rise portion of Pacific Star Building is in line with a plan to build a commercial portfolio of 160,000 square meters by 2019 and ride on the growth of the office sector.
Century Properties is acquiring the six-storey property built around a semicircular driveway and fountain by assuming an existing loan. The purchase excludes the 29-storey high-rise structure.
Located at the corner of Sen. Gil J. Puyat and Makati Avenue, the low-rise building of Pacific Star, which has over 5,900 square meters of office space, will immediately contribute to Century Properties’ recurring revenues as the development is fully leased out.
“The goal of the company is to diversify its portfolio and this is the easiest way to boost recurring portfolio,” said Kristina Garcia, Century Properties head of investor relations. The listed firm has been managing the building since its inception in 1989.
Garcia said securing a stake in Pacific Star was a strategic acquisition and the company was not looking at any more purchases in the near term.
Known for its portfolio of local and internationally renowned brand partners, Century Properties has been diversifying its product offerings through its recent ventures into retail, office and leisure developments.
Century Properties completed earlier this year Century City Mall, a five-level 50,000-square meter structure that was completed earlier this year.
By the end of the year, Century Properties will turn over Centuria Medical Makati, a 28-story out-patient medical facility also within Century City. The company aims to complete three Class A commercial buildings in prime locations with close to 90,000 square meters.
Century Properties’ profit was flat at P1.058 billion in the first six months of the year as the growth in expenses outpaced revenue expansion.
Source: Interaksyon | October 27, 2014