MANILA, Philippines – Century Properties Group Inc. is expanding its project portfolio to take advantage of the growth in the commercial, office and tourism segments.
Developments of business process outsourcing (BPO) offices, resorts and malls will complement strong residential sales, company officials said.
The property firm is jumpstarting its plan to build 100,000 square meters of commercial space in three years with the construction of four BPO towers totaling 30,000 sqm., said Century Properties co-chief operating officer Jose Marco Antonio.
The towers will be built under a long-term lease and will increase available office space in Bonifacio Global City in Taguig.
“We will be targeting the BPO industry as well as corporates and this is in our continued thrust for diversifying our income streams to recurring income businesses,” Antonio told reporters.
“Vacancy rates in multiple central business districts are very low at around three percent,” Antonio said.
Century Properties is also in advanced discussion for another joint venture office building in Taguig and a office land purchase in Makati, Antonio said.
In terms of commercial space, the firm is scheduled to complete the five-story Century City Mall in Makati late this year while the construction of the 28-story Centuria Medical Makati will be completed in 2014.
On tourism, Century Properties will roll out its first hotel project in Palawan late this year or early 2014.
“We have a vision of being a significant player,” Antonio said, adding that tourism is a sunrise industry given the rich natural resources of the Philippines.
Projects that will bring in recurring income are seen to complement the continuous growth of the residential sector.
Net income and pre-sales is targeted to reach a record P3 billion and P30 billion, respectively, by 2015 through existing inventory, unlaunched projects and leasing portfolio.
In the first half, Century Properties reported that its pre-sales jumped 13.3 percent to P12.1 billion from P10.7 billion in the same period last year. This makes the company on track to hitting a record P24 billion in pre-sales for the entire year.
Strong pre-sales were attributed to projects like the Trump Tower in Makati, Azure Urban Resort Residences in Parañaque and the Residences at Commonwealth in Quezon City.
Century Properties is also expanding to Central Luzon for the first time. It is in advanced discussion with land owners for a mixed-use development focusing on the affordable residential segment in Pampanga.
“Pampanga is a geographical diversification in key secondary cities,” Antonio said, adding that overseas Filipinos want to buy properties in Pampanga.
For this year, Century Properties allotted P7 billion for its capital expenditures that will support the construction of new buildings, Antonio said.
“We have barely scratched the surface in terms of addressing the rising demand for housing, given the country’s strong macroeconomic and real еstatе fundamentals that we foresee will continue to sustain the demand in the coming years,” said Century Properties chief finance officer Jose Carlo Antonio.
Source: Philippine Star | July 2, 2013