Century Properties, Mitsubishi forge housing joint venture
Century Properties Group, Inc. (CPGI) has spun off its affordable housing brand into a joint venture with Mitsubishi Corporation that will develop projects worth R57 billion in the next five years.
In a press briefing after the signing of the joint venture agreement, CPGI Chairman Jose E.B. Antonio said the joint venture company, Phirst Park Homes, Inc., will be incorporated after getting clearance from the Philippine Competition Commission.
Mitsubishi’s ASEAN Urban Development General Manager Hidetoshi Suzuki said “housing shortage is a serious issue in the Philippines which has a backlog of 6.6 million units.”
The decision to pursue a portfolio of projects through a new company comes after the success of Century and Mitsubishi’s initial joint venture project, PHirst Park Homes Tanza in Tanza, Cavite.
This is a 26-hectare project that has a total of 3,000 units in the R1 million to 3 million per unit price range.
PHirst Park Homes is looking to launch projects initially in the CALABARZON and Central Luzon regions. Once it established technical and market scale, it will then expand into the Visayas and Mindanao regions.
The firm aims to launch about 15 projects within the next 5 years with a total of roughly 33,000 units. Each site will be 15 to 20 hectares and it is currently in various stages of land banking.
This is equivalent to around R57 billion in project sales value, with capital expenditures estimated at around R10 billion over the first 5 years.
Under the terms of the agreement, CPGI will subscribe to 60 percent and Mitsubishi to 40 percent of the authorized capital stock equivalent to R5 billion over the same 5 year horizon.
“Our joint venture partnership with Mitsubishi Corporation solidifies Century’s plans of diversification and strengthens its positioning not just in the affordable housing category, but in the broader first home buyer market,” said Antonio.
Suzuki noted that, “this is not just for one project but for a long-term relationship that will make significant contributions in addressing the housing backlog in the Philippines.”
The joint venture partners share complimentary values and skill sets: Century Properties has over 30 years of experience in the real estate industry and has pioneered real estate concepts and industry firsts. Its mixed-use developments include Century City in Makati City, Azure Urban Resort Residences in Parañaque City, Acqua Private Residences in Mandaluyong City, Azure North in San Fernando, Pampanga, the Residences by Commonwealth in Quezon City, and Canyon Ranch in Carmona, Cavite.
Mitsubishi Corporation, on the other hand, brings to the partnership its expertise in development and technology. It is in businesses across virtually every industry, including industrial finance, energy, metals, machinery, chemicals, and daily living essentials.