Century Properties, ACC break into office, hotel projects in Global City
MANILA, Philippines — Property developer Century Properties Group Inc. is breaking into Bonifacio Global City’s burgeoning office and hotel property markets in partnership with the Alvarez group’s Asian Carmakers Corp (ACC).
CPG, led by the Antonio family, expects to invest an initial P1 billion in a two-tower development on a property bounded by the 3rd and 4th Avenues and 27th streets in BGC. The 3,286-square-meter-lot is owned by the Armed Forces of the Philippines-Mutual Benefit Association Inc. and currently leased by ACC.
“ACC shall form a new corporation with CPGI to construct two towers, one for commercial offices and the other for a hotel, with an expected gross floor area of 30,000-sqm,” CPG chair Jose E.B. Antonio said in a press statement.
CPG chief finance officer Jose Carlo Antonio added that the office and hotel project in BGC would cost at least P1 billion initially. “This project is part of CPG’s medium-term plan to expand its portfolio to include commercial and tourism developments,” the younger Antonio said.
This move seeks to open up a recurring revenue stream for CPG while taking advantage of the buoyant property market in BGC, where land values have risen at a much faster rate than in the Makati and Ortigas central business districts.
Based on a research by property consultants Colliers international Philippines, land values in BGC rose by a hefty 28.1 percent last year to an all-time high P237,000 per square meter and are seen to increase to P250,000/sqm by the fourth quarter of 2013. The increase in BGC land values outpaced the uptick in Makati (+5 percent) and Ortigas (+4 percent) in 2012.
This project will be CPG’s first venture in the office and hotel property segments in Fort Bonifacio, a former military camp. However, it developed two residential property projects in this area in previous years – Essensa East Forbes and South of Market. It was the first builder to finish and turnover a building in BGC with its Essensa project.
“As Century is expecting to complete over 4,000 units with 200,000 net saleable sqm of residential condominium units by December 2013, we are seeking to re-invest earnings into recurring income assets,” said the elder Antonio.
“We also expect the completion of our lifestyle mall called Century City Mall by the fourth quarter of this year,” he said.
CPG has had 26 years in the business of real estate development, marketing and property management. It is the developer of: the Azure Urban Resort Residences in Parañaque City, with a beach club designed by Ms. Paris Hilton; the Knightsbridge Residences at Century City; Trump Tower at Century City; the Milano Residences interior design by Versace Home; Acqua Livingstone interior design by MissoniHome; Acqua Iguazu yoo inspired by Starck; and Centuria Medical Makati in partnership with GE Healthcare.