Mitsubishi gets stake in Century Properties’ Forbes Media Tower

Century Properties Group, Inc. is taking in Mitsubishi Corporation, one of Japan’s oldest leading conglomerates, as partner for the development of the world’s first Forbes Media Tower at a cost of $100 million.

In a disclosure to the Philippine Stock Exchange, CPGI said its subsidiary Century City Development Corporation (CCDC) has signed a joint venture agreement with Mitsubishi to develop the 35story office building in Makati which was announced in 2013.

Under the agreement, both parties will develop, lease out and maintain Forbes Media Tower through Century City Development II Corporation (CCDCII), of which CCDC and Mitsubishi have 60 percent and 40 percent ownership, respectively.

CCDCII shall finance the projected US$100 million ( 4.5 billion) total project cost with US$51 million ( 2.3 billion) in equity and a 10-year, US$49 million ( 2.2 billion) senior loan granted by the Bank of Philippine Islands.

“BPI has approved the loan on the basis of the project’s strong financial viability amidst the rapidly growing office space sector and its confidence in the combined strength and experience of Century and Mitsubishi,” Century said.

“We are privileged to partner with Mitsubishi Corporation, one of Japan’s most respected business conglomerates, in developing Forbes Media Tower,” said CPGI chairman Jose E.B. Antonio.

He added that “we are grateful for their trust and confidence, as these are testament to our sound business strategy of developing projects with determined demand. Forbes Media Tower will be a stellar addition to the office market in our country’s premiere financial district.”

“Mitsubishi has invested in two Philippines real estate development projects, one for industrial park and another for residence,” said Mitsubishi Senior Vice President Nobuya Ichiki.

He said this will be Mitsubishi’s third development project and the first office development in the Philippines. Mitsubishi executes real estate development projects in Japan, China, United States, and the countries in South East Asia Region.

“Among all countries, Mitsubishi believes Philippines has the promising market due to its continuous high economic growth. We hope to continue and further strengthen our partnership with CPGI to expand real estate investment business in the Philippines,” he said.

Forbes Media Tower is scheduled for completion in 2019. It will have a total gross floor area with parking of approximately 95,000 square meters. Net leasable area will be over 50,000 square meters.

As the world’s first Forbes-branded commercial building, it is designed to serve the world’s business leaders by providing an environment to conduct business with premium amenities.

“The sector is awash with opportunities for commercial infrastructure as the country continues to attract BPO and multinational companies… Century targets to be a significant participant in the growth of the office space sector by 2018,” said CCDC director Marco R. Antonio.