Century sees double-digit profit growth

Century Properties Group Inc. (CPGI) is projecting a double-digit profit growth rate this year, in the mid to high teens, as its diversification efforts begin to pay off.

In an interview after the firm’s annual stockholders’ meeting, CPGI Chairman Jose E.B. Antonio said earnings will come from its traditional high rise projects as well as its new affordable housing business and recurring income sources.

“We are proud to announce that we have made significant headway in our diversification program as we have increased investments in allied real estate sectors,” Antonio said.

He noted that, “from being concentrated in high-rise condominium projects… We now have four platforms; namely, in-city developments that includes our residential condominium projects, investment properties, horizontal affordable housing outside of Metro Manila, and leisure and tourism.”

Antonio said they will continue to earn from the completion of their vertical developments which has sold 91 percent of over 19,000 units launched.

“There are no more marketing risks for these and all we have to do is complete the buildings and we're done,” he added.

Meanwhile, CPGI will continue to launch new projects in Metro Manila ranging from mid-rise buildings, townhomes, and mixed-use projects targeted for the mid to high end market.

“There’s still a big demand for young couples to have their own homes that are bigger than the condominiums so we’re talking of spacious projects that will really be family-oriented,” Antonio said.

CPGI also continues to grow its leasing portfolio for a steady stream of revenues. This year, it will complete Asian Century Center, a 22-storey of office building in Bonifacio Global City.

“The six leasing assets that we are currently completing will have a total gross floor area of over 300,000 square meters and are expected to contribute about P1 billion in revenues by 2020,” he said.

Century Properties has also expanded outside of Metro Manila for affordable housing and has formed a new company, PHirst Park Homes Development Inc. which is a joint venture with Mitsubishi Corporation that will pursue the development of projects of scale outside Metro Manila.

“For leisure and tourism, we launched our first project under this platform in December of last year called Batulao Artscapes. To date, we have sold 77 percent of close to 300 units launched, with sales value amounting to R1.2 billion,” said Antonio.