Century Properties sees P1-B revenue from comm’l leases

MANILA, Philippines - Upscale developer Century Properties Group Inc. said it expects to generate P1 billion in revenues from various commercial leasing projects that will be completed in the next five years.

The listed property firm of the Antonio family plans to boost the recurring income segment of its business by developing numerous new office space, retail centers and condotels, company executives said yesterday.

“The company is now evolving from being a top residential developer in Metro Manila to a leading well diversified real estate developer with significant recurring and predictable revenue streams,” Century Properties chairman and former ambassador Jose E.B. Antonio said during the firm’s annual stockholders meeting.

“By 2019, Century Properties’ leasing portfolio will provide a stable and balanced stream of cash flows and is expected to earn significant recurring income,” said Kristina Garcia, director for investor relations of Century Properties.

Specifically, the firm will end 2019 with 157,823 square meters (sqm) of leasing portfolio.

For 2012-2016, Century Properties expects to complete 21 residential buildings with a floor area of 1.15 million sqm and two commercial leasing developments totalling 57,853 sqm.

In 2017-2019, the company targets to complete 10 residential buildings with 359,988 sqm and four commercial leasing developments with 99,970 sqm. Century Properties will set aside a portion of the Spire, Forbes Media and Fort Bonifacio towers for office space.

Century Properties also partnered with global brand Novotel for a 150-room condotel in the Yosemite tower of the Acqua Private Residences in Mandaluyong City. Novotel is the mid-scale hotel brand within the Accor Group with close to 400 hotels and resorts in 60 countries.

Century Properties chief finance officer Jose Carlo Antonio said the P1 billion revenue target will account for around 15-20 percent of the company’s total income by 2019. He added that real estate companies enjoying high valuations usually have a strong recurring income portfolio.

In March, Century Properties opened the P1.4-billion Century City Mall, its flagship retail development located in the masterplanned development Century City in Kalayaan Avenue, Makati.

By end-2014, Century Properties will deliver more than 500 clinic suites at Centuria Medical Makati, a 28-story outpatient IT-medical arts building also at Century City.

The company secured  yesterday shareholders’ approval to incorporate Century Properties Hotels & Leisure Inc., which will handle the tourism business.

“We are identifying opportunities for the hospitality industry as part of expansion program of Century Properties to diversify location and products,” Antonio said.

Century Properties allotted more than P12 billion in the next five years to fund the construction of numerous residential towers in masterplanned developments in Metro Manila’s key growth areas.