Century Properties is set to experience a growth period due to recent expansions to its portfolio, which will see the real еstatе company’s value hit PHP3 Billion (US$72.9 million) by 2015.
The PHP1.86 billion (US$45.2 million) earned during the previous financial year more than doubled the profit margin hit in 2011, Century Executive Chairman of the Board Jose E B Antonio told local online news portal Malaya Business Insight.
Earnings before tax and other accounting deductions stood at PHP2.54 billion (US$61.7 million), an 88 percent growth from the PHP1.35 billion (US$32.8 million) hit in the previous year.
“The 2012 results reflect the culmination of Century Properties’ sustained performance over the last three years,” he said. “We look forward at 2012 as a remarkable breakout year for Century Properties with a solid platform that will enable us to take the company to an even higher level.”
Last year’s success was a result of the creation of a more balanced portfolio of luxury and middle-income market developments, coupled with new relations with global brands, according to Antonio.
“We introduced unprecedented development collaborations with global brands, listed the company in the Philippine Stock Exchange, successfully raised equity capital three thrice since 2011 raising a total of PHP5.6 billion (US$136 Million), expanded our relationship with eleven financial institutions that have extended PHP6.6 billion (160 million US$) of credit facilities, and progressed from developing stand-alone projects to master-planned communities,” he said.
The company’s next venture is set to take advantage of the country’s sudden tourism boom, particularly in the hotel sector, in order to enhance the profile further.
The increase in tourist arrivals, which hit 4.3 million through 2012, is due to the range of natural and cultural attractions available throughout the Philippines, however, a number of obstacles currently prevent the sector from reaching its potential, according to Antonio.
“I know that the basis of all businesses aside from the environment is infrastructure,” he said. “So we are looking towards the pronouncements of the government that our infrastructure will come into play very soon”
The expansion of Century’s affordable luxury properties has already attracted an influx of foreign investment.
“The luxury brands attract not only high net worth individuals, entrepreneurs in the Philippines but also foreign buyers,” Antonio said. “A unit at the Trump Tower Manila for example, costs a lot lower than a similar project in say Singapore or Hong Kong.”
An estimated 67 percent of Century’s sales in 2011 hailed from the international market, both overseas-based Filipinos and foreigners, Century sales figures showed.
The company is set to receive PHP40 billion (972 million US$) in pre-sales from projects yet to be launched. Pre-sales last year reached P30 billion, a 40 percent y-o-y increase on the PHP21.4 billion (520 million US$) from 2011.
Source: Property Report | April 22, 2013