MANILA, Philippines – Century Properties Group (CPG) is considering venturing into hotel development as it seeks to further expand its revenue stream.
CPG President and CEO Marco Antonio said the company is studying the possibility of diversifying into other segments of the market to build up its recurring income portfolio.
“We hope to grow recurring income base to more than 10 percent of the portfolio. With opportunities in the pending real еstatе investment trust law, it may serve as an impetus for us to create a recurring income stream,” Antonio said.
Antonio said the company plans to put up office buildings on its landbank as well as develop convenience retail within its residential and township projects.
For its initial retail project, the group is currently building a lifestyle center in Century City, a 3.4 hectare flagship development in Makati that will showcase upscale residences and an outpatient medical IT building.
CPG is positioning itself in the tourism business, which is seen to be the next sunshine industry as the government steps up efforts to promote the country.
Property consultancy firm Jones Lang LaSalle sees tremendous growth in tourism-related projects especially after government starts opening up the other international airports in the country .
To make its presence felt in the tourism sector, CPG has teamed up with Group Developers Inc., Caylaway Development Corp. and Batulao Bio-loop Farms Inc. to transform a 142-hectare property in Batulao, Batangas into a major leisure and resort community.
The resort will cater to both the local and foreign markets.
CPG is eyeing P20 billion in sales this year, higher than the P18.4 billion recorded in 2011. To achieve this, the company has raised its capital spending this year to as much as P8.3 billion or more than triple what its spent in 2011.
Aside from Century City, the company is accelerating the completion and expansion of existing projects within its three other masterplanned developments, namely Canyon Ranch in Cavite, Azure Urban Residences in Paranaque City and Acqua Residences in Mandaluyong City.
These new developments, when completed, will make available 23 condominium buildings featuring 15,703 condominium and office units and 955 single detached homes, with a total expected gross floor area of 1,185,024 sq.m.
CPG is the developer of the posh Essensa East Forbes in Fort Bonifacio and Pacific Star Building. Its portfolio also includes the country’s first fully-fitted and fully-furnished condominium South of Market (“SOMA”) in Fort Bonifacio, SOHO Central in the Greenfield District of Mandaluyong City, Pacific Place in Ortigas and a collection of French-inspired condominiums in Makati City called Le Triomphe, Le Domaine and Le Metropole.
It also manages 51 properties including the Asian Development Bank and Makati Medical Center.
Source: Philstar | March 5, 2012