At its annual shareholder’s meeting held on July 23, Century Properties Executive Chairman of the Board Jose E.B. Antonio announced the company’s diversification strategy as it ventures into the commercial leasing business.
Seeing potential growth in this area of real еstatе development, Century Properties is looking at developing a total of over 150,000 sq. m. to comprise its leasing portfolio that may generate up to P1B of revenue upon completion in 2019.
“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,” Century Properties Executive Chairman of the Board Jose E.B. Antonio said.
In March this year, Century Properties launched the Century City Mall, the first mall in Makati in close to a decade. It will be the first of the company’s string of retail centers as it is also looking into expanding this new portfolio in its other master-planned developments.
Turning over at the end of 2014 is Century Properties’ milestone contribution to health care and tourism, the 28-storey Centuria Medical Makati. The project is hinged on the expanding interest for outpatient medical care for its convenience, value for money and modern technology. Located in the Philippine Economic Zone Authority (PEZA)-registered IT Park within Century City, Centuria will be equipped with a modern I.T. backbone to support its varied locator’s connectivity requirements. As a medical tourism facility, Centuria will offer medical concierge services.
Century Properties’ other recurring income streams are expected to come from the luxury tower Century Spire, Asian Century Center in Bonifacio Global City, and the soon to be launched Tower 6 of the Acqua Private Residences.
Aside from its residential floors, Century Spire will have a number of floors dedicated to office space. On the other hand, the Asian Century Center – in Makati and Bonifacio Global City, respectively – are both exclusively office towers and expected to benefit from the continuous growth of the BPO sector and the entry of new enterprises.
Strong residential real еstatе performance in 2013
Meanwhile, Century Properties’ residential real еstatе business has remained strong. The company continued to post strong pre-sales results. Its current portfolio of launched is about 90% pre-sold.
Translated into figures, Century Properties generated P5.2 billion in pre-sales in the first quarter on top of the P24.6 billion of pre-sales generated in the full year of 2013 and P21.4 billion in 2012.
By 2019, Century Properties will complete 31 residential buildings equivalent to 1.67 million square meters.
“The favorable reception of our projects across markets is attributable to the growing strength of the Century Properties brand as affirmed by the outstanding quality of all of our projects,” said Century Properties Investor Relations head Kristina Garcia.
Taking advantage of this momentum, the company also said it will make some announcements of new projects in the coming months.
First of these is the Azure North, an out-city replication of its massively successful residential resort concept project, the Azure Urban Resort Residences in Bicutan, Paranaque. It will be located adjacent to the established commercial centers in the provincial capital of San Fernando, Pampanga.
Century Properties is confident that San Fernando’s profile will attract buyers. With the North Luzon Expressway cutting through the city, access to the provincial capital is easy. A number of the country’s biggest names in retail and manufacturing are located within the city and its outskirts.
San Fernando has also been recognized in 2011 in the International Awards for the Most Liveable Communities; and is a Hall of Famer for being recognized a number of times as Most Business-Friendly City by the Philippine Chamber of Commerce and Industry.
This is on top of a very financially capable populace across market segments.
“As a whole, Pampanga is getting stronger financially with its own emerging middle class. The province is home to close to 300,000 OFWs and is a growing center of BPO activity,” said Century Properties Investor Relations head Kristina Garcia.
Another project to be launched in the immediate future is Acqua’s Tower 6; the details of which will be announced at a proper time.
Taking a positive industry outlook
Century Properties is confident that the country’s strong economic performance will help the industry see through another period of success in the coming years, with macroeconomic fundamentals seen to continue to support and encourage the real еstatе industry.
Moreover, average leading bank mortgage rates remain stable and inﬂation likewise remain benign at about 3%. Adding to this is the still growing Overseas Filipino Worker (OFW) remittances. In 2013, OFWs remitted US$22.8 billion, a 6.4% increase from the year before. Early indications suggest that this year is shaping to be another record year for OFW remittances.
“We remain focused on building a stronger and more balanced real еstatе company, carrying on with the very same spirit and will power that carried us through in our earlier years,” the Century Properties chairman continued.
In 28 years, Century Properties has completed 25 condominiums with a total of 873,127 square meters and 8,777 units.