CPG sees boost from portfolio mix
CENTURY Properties Group (CPG) is bullish on diversifying its portfolio, with the construction of affordable housing projects, leisure properties, as well as commercial spaces slated to contribute to income and revenue growth by 2020.
The Antonio-led property firm will be launching five projects estimated to generate P10.6 billion in revenues until 2018 and aimed at strengthening its diversification strategy.
“We are now able to reinvest in exciting new product lines and markets, specifically leasing, affordable housing, and tourism, which will diversify our product portfolio and in turn drive growth for the company,” CPG Co-Chief Operating Officer Jose Marco R. Antonio said during the company’s annual stockholders’ meeting in Makati on Thursday.
For the affordable housing segment, the company launched Phirst Park Homes in Tanza, Cavite during the first quarter. The 26- hectare development offering 2,877 units targets first time homebuyers for house and lots worth P1.1 million to P1.8 million. With this, monthly amortization could go as low as P8,000.
“The big picture for housing in the Philippines is a very big backlog between demand and supply... kaming lahat (all of us) in the industry, we’re producing homes [ but] we’re not even approaching 500,000 ( units) a year,” CPG President and Chief Executive Officer Jose E.B. Antonio told reporters after the shareholders’ meeting.
The executive cited government statistics saying the country has a housing backlog of more than 5 million homes, which they will help solve by producing 20,000 units every year by 2020.
“Looking forward, the affordable [ segment] will be 35% of our total income… one- third of revenues and bottom line… we’re ramping up, siguro (maybe) we will stabilize this [ to] 20,000 (units) by 2020, that’s our target,” Mr. Antonio said.
The company also looks to close deals to increase its landbank in Cavite, Laguna, Batangas, and Bulacan. CPG has partnered with Mitsubishi Corp. to develop all of its housing projects in the affordable category, Mr. Antonio said.
“They give, offer us technology… funding is available here, we don’t need to get funding from Japan. So building technology we access it together,” Mr. Antonio said, adding that this will help them reduce operation costs.
For the leisure and tourism segment, the company is launching Batulao in Batangas, a 6.6-hectare development with a total of 356 units during the second quarter of 2017. The project, with units priced between P3 million and P20 million each, is estimated to book revenues of P2.2 billion. CPG will further be launching Palawan, a 56-hectare tourism estate in San Vicente, Palawan by 2018.
In the first quarter of 2018, CPG will also launch the P2.7-billion Azure North Townhouse in Pampanga, with 148 units across 2.2 hectares of land, followed by Acqua Townhouse in Mandaluyong City in the second quarter of the same year, set to generate P1.2 billion in revenues.
Meanwhile, the company looks to bring its gross floor area (GFA) for leasable properties to 306, 736 square meters (sq.m.) by 2020, which will deliver over P1 billion in revenues. The company will reach 172,000 sq.m. in GFA by 2018.
Shares in CPG were down by three centavos or 5.26% to 54 centavos each on Thursday.