MANILA – Century Properties Group Inc. has teamed up with hotel operator Novotel to boost its recurring earnings.
During its annual stockholders meeting on Wednesday, Century Properties chairman Jose E.B. Antonio told reporters that the company expects to generate up to P1 billion in recurring profit by 2019 from its commercial business upon completion of over 150,000 square meters of leasing portfolio.
Century Properties expects its leasing business to account for 15-20 percent of profit when a significant portion of its planned projects are completed, its chief finance officer Jose Carlo Antonio told reporters on the sidelines of the meeting.
“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, the company’s chairman, said.
The property firm formed a new unit, Century Properties Hotel and Leisure Inc (CPHLI), which will become the vehicle for its leisure ventures. Shareholders approved the incorporation of CPHLI on Wednesday.
The first Novotel, a 4-star international mid-scale brand of the Accor Group, will rise within the Acqua Residences in Mandaluyong City. The service apartment component will account for 150 rooms out of the 500 rooms in Acqua’s sixth tower, while the balance will be residential units that will be sold to homebuyers.
Century Properties is scouting for several sites for future Novotel developments.
Century Properties made its foray into the commercial leasing business in March with the launch of Century City Mall within its vertical community Century City in Makati. By yearend, the property firm is turning over the 28-storey Centuria Medical Makati, also within the mixed-use township.
The company has a pipeline of projects that will generate recurring income streams. They are luxury tower Century Spire and Asian Century Center in Bonifacio Global City.
Century Properties’ profit rose 3 percent to P513.06 million in the first quarter from P500.56 million in 2013. Consolidated revenues jumped by a tenth to P2.85 billion from P2.60 billion a year ago.
Source: Interaksyon | July 23, 2014