CENTURY Properties Group, Inc. has acquired a 56-hectare property in Palawan to develop a beachfront integrated resort that would entail a P20-billion capital expenditure over the next 10 years.
In a statement yesterday, the listed luxury developer said it signed a memorandum of agreement for the property, which is located in the municipality of San Vicente — “a picturesque town located northwest of Palawan’s mainland that teems with pristine beaches and a diverse marine life.” The project will be carried out in phases. The company has budgeted P1.5 billion over the next three to five years to complete the first one.
“The pace and timing of subsequent phases will, in a large part, be driven by the take up of the sale of hotel villas and the residential investment properties, which will form a significant part of the returns from this project,” Century Properties Executive Chairman of the Board Jose E. B. Antonio was quoted in the statement as saying. “This acquisition represents an important next step for Century Properties as it works towards positioning itself to benefit from the huge structural potential identified in the tourism and lifestyle sector in the Philippines.”
The 146,294-hectare town of San Vicente has its own airport, with a two-kilometer runway and terminal that would allow regional carriers to fly directly to San Vicente once completed in 2015.
“This is a deal we have been working on for a considerable period of time,” Mr. Antonio said. “By focusing on larger projects where the local tourism infrastructure is in place or under development, we are taking a careful and prudent approach to capturing the potential in the hospitality and lifestyle sector.”
From January to September last year, the company’s profit slightly inched up by an annual 0.39% to P1.59 billion, while operating revenue rose 5.34% to P7.55 billion.
Shares in the company were unchanged at 92 centavos apiece on Tuesday.
Source: Businessworld Online | April 21, 2015