CENTURY PROPERTIES Group, Inc. plans to ramp up its capital expenditure (capex) this year to as much as P8.2 billion, a 13% jump from last year’s spending, in order to bankroll ongoing construction at four flagship mixed-use projects, the property developer said in its 2012 annual report.
“The Group (Century Properties) budgeted between P7,200 million to P8,200 million for capex for 2013 primarily to fund the development of its four master-planned community project,” read the report.
The company was referring to its four ongoing master-planned projects:
• Century City, a 3.4-hectare mixed use project in Bel-Air, Makati City that will have eight condominiums, a shopping mall, and a medical outpatient facility when completed;
• Acqua Private Residences, a six-tower residential development in Mandaluyong City beside Pasig River;
• Azure Urban Resort Residences, a nine-building, six-hectare development in Parañaque City that will have a man-made beach and club designed by socialite Paris Hilton; and
• Canyon Ranch, a 25-hectare subdivision within the 77-hectare San Lazaro Leisure Park in Cavite City.
In February last year, Century Properties earmarked as much as P8.3 billion for capex but actually spent P7.26 billion, according to the annual report.
Century Properties said it plans to bankroll spending this year through various sources.
“The Group expects to fund budgeted capital expenditures principally through existing cash and cash from operations, through borrowings and through its share offering,” the company added in its annual report.
Last March, Century Properties raised approximately P1.64 billion from an overnight, discounted sale of 800 million shares at P2.05 apiece to various institutional investors.
Century Properties, a developer of high-end properties, debuted on the Philippine Stock Exchange via backdoor listing in September 2011, replacing dormant energy firm East Asia Power Resources Corp.
As of end-2012, the developer had already completed 5,560 residential units in 21 condominium buildings in Mandaluyong, Makati, Pasig, Quezon, and Taguig cities, all with a total gross floor area of 669,857 square meters (sq. m.), the annual report read.
It was also managing 51 residential and commercial properties by the end of last year.
Century Properties more than doubled its net income to P1.86 billion last year from P866 million in 2011 on the back of a surge in revenues from the firm’s property projects, which more than doubled to P9.60 billion from P4.70 billion.
The company aims to grow its net income to P3 billion, and its pre-sales to P30 billion by 2015 — the firm’s 30th year in real еstatе — on the back of more projects in key growth cities outside Metro Manila and the development of some 100,000 sq. m. of land for commercial projects.
Shares of Century Properties jumped by five centavos or 2.38% to close at P2.15 apiece on Friday last week from their Thursday finish of P2.10 each.
Source: Businessworld Online | May 5, 2013