Listed developer Century Properties Group Inc. is expanding its commercial leasing portfolio as part of its diversification strategy to drive up recurring income to P1 billion by 2019.
Century Properties Executive Chairman of the Board Jose E.B. Antonio announced the company’s diversification strategy at the company’s annual stockholders’ meeting held in Makati on Wednesday.
“The company is now evolving from being a top residential developer in Metro Manila to a leading well-diversified real еstatе developer with significant recurring and predictable revenue streams,” Antonio said.
He said Century Properties is looking at developing a leasing portfolio totaling more than 150,000 square meters that may generate up to P1 billion in revenues upon completion in 2019.
In an interview with reporters, Century Properties chief financial officer Jose Carlo Antonio said the company is trying to build up its recurring revenues, although he admitted that “it will take time.”
In March this year, Century Properties launched the Century City Mall, the first of a string of retail developments that are in the pipeline.
The company is also scheduled to turn over by the end of this year its maiden project in the healthcare industry, the 28-story Centuria Medical Makati. Centuria is located at the Philippine Economic Zone Authority (PEZA)-registered IT Park within Century City.
Other recurring income streams are expected to come from other projects such as Century Spire, Asian Century Center in Bonifacio Global City, and the soon-to-be-launched Tower 6 of Acqua Private Residences.
Besides its residential floors, Century Spire will have a number of floors dedicated to office space, while the Asian Century Center – in Bonifacio Global City, respectively – are both exclusively office towers which should benefit from the continuous growth of the business process outsourcing (BPO) sector and the entry of new enterprises.
From 2014 to 2016, Century expects to complete two commercial leasing developments. It also targets to complete four commercial leasing developments, including serviced apartment hotels, from 2017 to 2019.
Source: Manila Times | July 23, 2014