Century Properties Group Inc. (CPG) will be going into the tourism business by putting up an integrated resort in Palawan in a bid to increase its recurring income contribution by 2015.
“We’re opening up new markets in certain key cities in the Philippines, particularly in tourism. We’re developing in areas where there is infrastructure already,” CPG chairman and CEO Jose EB Antonio told reporters on the sidelines of The Asset and Financial Executives of the Philippines forum Wednesday.
“We’re going to be strong in tourism…which is still a sunshine industry,” he added.
Antonio said the company has bought about 100 hectares of lands in mainland Palawan and are in the planning stages for the integrated resorts.
“We’re doing developments from ground up. We are going to do integrated resorts, we’re still in the planning stage and we’re looking at launching this by fourth quarter or first quarter of 2014,” he noted.
CPG is looking at putting up three-, four-, and five-star accommodations of which “some will be managed by branded hotels and some will be managed by CPG,” Antonio said.
The company official noted that tourism is one area in the economy that will “really affect even the last layer of our society,”
“The investment grade is only for the financial markets, a good invitation for investors. But at the end of the day we need to make the people feel improvement and this will be through employment,” he said.
For the tourism projects in general, the company chairman said CPG will invest “a few hundred million pesos” annually, of which will come from the follow-on offering the company did earlier this year.
In addition, Antonio also said CPG recently acquired land in Fort Bonifacio, Taguig City to put up an office building.
This is expected to boost the company’s recurring income by 2015.
“By 2015, about 30 percent of total income will be recurring from office buildings, residential, retail, and hotel and resorts,” Antonio said.
In March, CPG raised $40 million from a follow-on offering to fund expansion and landbanking activities.
Source: GMA News | June 26, 2013