Saturday, May 23, 2015

Century Properties plans to invest P27-B in 5 years


An upmarket realty firm specializing in residential, commercial, leisure and tourism development and leasing, Century Properties Group (CPG) recently issued its investment goals for the next five years.

The company, known for its upcoming township Century City in Makati, has publicized it intends to invest P27 billion in its portfolio within a five-year timeframe. 

"The allocation of P27 billion will be roughly P12 billion in horizontal housing segment to develop 20,000 homes, P10 billion in investment property and P5 billion for vertical development/tourism," stated Jose Carlo Antonio, chief finance officer of CPG.

"Internally, we will be targeting a 1.3 ROIC (return on invested capital) and an unleveraged IRR (internal rate of return) of 17 percent. Both statistics are pre-leverage," according to Antonio.

"Our capex plan is to have P10 billion spending per year or roughly P60 billion from now until 2020, as opposed to our historical average capex of P8.3 billion from 2012 to 2014," said Antonio, pertaining to the company's "Century 2020 plan.

"There is a significant opportunity in the Philippines but also a significant expansion of supply. We need to differentiate our product in light of increasing competition," said Antonio.

"For the horizontal economic housing, as we all know this may have the broadest demand potential and one of our operating subsidiaries CCC (Century Communities Corp.) will focus on supplying homes with a price of P1 million in prime communities focusing in National Capital Region, Calabarzon and Central Luzon."

"For tourism, it will have both a leasing component as well as a for-sale component. We will launch new projects based on market demands that we project will give return on capital and internal rate of return targets. With regard to landbank on vertical developments, we will be selective but it has to be in the right location, price, and terms,” Antonio stated.


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