REAL ЕSTATЕ DEVELOPER Century Properties Group, Inc. has acquired an eight-hectare land in Pampanga on which it plans to develop a mixed-use project that will generate some P6 billion in sales from the residential component alone, the listed firm said in a statement attached to a disclosure yesterday.
“Century Properties announced the acquisition of close to eight hectares of property in the city of San Fernando, Pampanga from the House of David Realty and Development Corp. to build the said mixed-use development,” the company said.
The value of the deal, which marked the company’s entry into Central Luzon province, was not immediately known.
The company, however, said funding will come from the P1.6-billion equity sale last March.
The property is located north of Metro Manila in the area of the San Fernando Interchange across the SM and Robinsons malls in that city.
“This will form part of a city or town center that the company envisions for the area, to position it as a future central business district in the north,” Century Properties said in its statement.
“The Pampanga development is currently being master-planned, and Century estimates a sales value of P6 billion from the residential portfolio, which will target end users from the middle-income market segment.”
Ladislao S. David, chairman emeritus of the House of David Group, recalled that other parties also offered to buy the property.
“We are pleased with the successful sale of the property to a real еstatе company with a proven track record of delivery and innovation,” Mr. David said.
“Many have expressed interest in developing the House of David property because of its strategic location and vast business potential, but we believe that Century Properties is the right company to do this collaboration with as we share the same family and corporate values.”
Century Properties said it aimed to take advantage of the strategic value of San Fernando City, which was recently ranked as the third most competitive city by the National Competitiveness Council.
“Central Luzon is one of the fast-rising growth centers in the Philippines. Century will contribute to further enhance the competitiveness of San Fernando by building an integrated urban center that will complement the city’s progressive pace,” the company said.
“It is time to expand modern infrastructure into cities like San Fernando for a greater population to experience the country’s advancement.”
Century Properties has earmarked about P7 billion for capital expenditure this year — particularly for land banking and construction — higher than the P4 billion actually spent last year.
The company booked a P500.56-million net income in the first quarter, about 10.36% more than the P453.55 million earned in the same three months last year. Revenues went up 4.84% to P2.60 billion from P2.48 billion, while cost and expenses increased by 1.62% to P1.88 billion from P1.85 billion.
Its shares closed trading yesterday at P1.22 apiece, unchanged from their Tuesday finish.
Source: Businessworld Online | August 7, 2013