CPG targets P1.5B in recurring revenues by 2020
CENTURY PROPERTIES Group, Inc. (CPG) aims to grow its recurring revenue base to P1.5 billion by 2020, as it completes a mix of office, retail, and hospitality projects during the period.
The Antonio-led property developer currently has around 130,000 square meters (sq.m.) of leasable spaces under its portfolio, which the company is targeting to expand to 350,000 sq.m. by 2020. This will allow the leasing unit to contribute to a third of revenues at the same time.
“By 2020 we hope to grow that close to five times to around P1.5 billion of revenues over around 300,000 sq.m. of office space. It includes most of our recurring income, including Century City Mall,” CPG Chief Operating Officer Marco R. Antonio told reporters after the signing of a lease agreement for one of its office towers in Makati yesterday.
CPG is set to complete four projects until 2020, including the company’s largest office building called Century Diamond Tower (CDT) inside its Century City estate in Makati. The P4.5-billion office tower will offer 58,618 square meters (sq.m.) of leasable office space across 35 floors.
The company looks to attract multinational firms, business process outsourcing, and knowledge process outsourcing firms to locate in CDT, which has also secured accreditation from the Philippine Economic Zone Authority. This entitles locators in the building to tax perks.
CPG signed on Wednesday a leasing agreement with real estate brokerage services firm Leechiu Property Consultants (LPC) for the CDT. The company expects CDT to command lease rates of P1,200 to P1,300 per sq.m. every month.
“We hope that this tower will be fully lease out prior to its opening. We want to start the leasing process a year in advance,” Mr. Antonio said after the signing ceremony for the leasing agreement with LPC.
Previously called the Forbes Media Tower, CPG is changing the project’s name to CDT after deciding not to push through with its partnership with Forbes. However, the company said it remains open to other collaborations with Forbes in the future.
CPG also partnered with Japanese firm Mitsubishi Corp. for the project. PROJECT COMPLETION
At the same time, CPG is scheduled to complete the Asian Century Center in Bonifacio Global City this November. The 20-storey office building will offer around 25,000 sq.m. in leasable space, 80% of which has already been leased out. Mr. Antonio noted lease rates are also at around P1,200 per sq.m. in the project.
The company will likewise complete Novotel Suites Manila, its hotel development at the Acqua Private Residences in Mandaluyong City. The hotel will offer studio, deluxe, and two-bedroom units across 41 floors. Amenities include a swimming pool, gym and fitness center, swimming pool and deck, and a restaurant bar and café.
It will also finish construction of Century Spire, a 60-storey mixed-use tower in Makati with residential and office components.
The four projects will bring CPG’s leasing portfolio to around 300,000 sq.m., from the current 130,000 sq.m.
Beyond these projects, Mr. Antonio said they are currently on the lookout for more land banking opportunities.
“We’re actively looking for new sites. Hopefully next year we will be able to announce more,” Mr. Antonio said.
CPG’s net income climbed 10% to P490 million in the first six months of 2018, as revenues likewise surged 40% to P4.7 billion.
Shares in CPG gained two centavos or 4.55% to close at 46 centavos each at the stock exchange on Wednesday.