Century Properties buys out partner in housing venture

The board of Century Properties Group Inc. (CPG) has approved the company’s buyout of its Japanese partner Mitsubishi Corp. (MC) in their affordable housing venture.

The two companies, however, promised to partner again as investors in projects in the Philippines and in Asia.

The CPG board has approved the company’s acquisition of the 40 percent stake of Mitsubishi in Phirst Park Homes Inc. (PPHI) and Tanza Properties Inc., giving the real estate developer full ownership of the fast-growing business unit.

“This acquisition is part of the group’s strategic move to consolidate interests in the business segment where the market is robust, allowing us to create more value for our stakeholders, contribute more to serving the needs of our fellow Filipinos for decent, quality and affordable first homes,” CPG Executive Chairman Jose E.B. Antonio said.

“We remain cognizant of the strong fundamentals of the affordable housing market. The housing backlog continues to be a reality, which has caused us to fare well despite macro-economic headwinds,” CPG President and CEO Marco R. Antonio added.

The approval of the buyout is aligned with Mitsubishi’s business direction in the region, according to the company’s executive vice president and group CEO for urban development group Takuya Kuga.

“PPHI has expanded to become one of MC’S core businesses in the real estate market in the Philippines. With MC’S business management system and value-added cyclical growth model, we believe that together with CPG, MC was able to incubate and increase the value of PPHI by contributing to various fields,” Kuga said.

“The great outcome that we initially projected to achieve in 10 years’ time has been substantially realized within 5 years. As MC has already achieved its optimal goal for this particular investment, we believe that it is the ideal opportunity to pursue new seeds of growth in other emerging markets both in the Philippines and the Asian region.”

The company said they are now making arrangements to discuss the two firms’ next venture.

Launched in 2017 as an affordable housing brand, Phirst Park is on its way to achieve in 2023 the launch of 15 projects it set out to do with Mitsubishi 5 years ago.

CPG also announced in 2022 its expansion into other markets, with ventures in the socialized and economic housing, and midincome residential markets under Century Phirst Corp., a new subsidiary fully owned by CPG.

Century Phirst has then proceeded with the opening of three flagship projects—phirst Sights Bay in Bay, Laguna, its ticket into the socialized and economic housing segment; Phirst Editions Batulao, in Batangas, its maiden midincome development; and Phirst Centrale Hermosa, its first mixed-use township in Hermosa, Bataan.