Century Properties raises $40M through share sale

MANILA, Philippines—Century Properties Group (CPG) has raised $40 million from a warmly received overnight equity deal, proceeds from which will be used to fund expansion and landbanking activities, the company announced Wednesday.

CPG sold 800 million shares at a price of P2.05 per share through a top-up offering that was completed Wednesday night.

The order book was oversubscribed by 2.4 times the offer size.  Macquarie Capital (Singapore) Pte Ltd. and Standard Chartered Securities (Singapore) Pte. Ltd. arranged the equity deal.

Under the top-up placement deal, controlling shareholder Century Properties Inc. sold the 800 million common shares to new investors but will subscribe to the same number of shares at the same price.  After the top-up deal, its interest in CPG will be pared down to 66.73 percent from 72.73 percent while the public float will rise to 33.27 percent from 27.27 percent.

Proceeds from the equity deal will be used to “fund the company’s continued growth in land bank within Metro Manila and expand its projects in key select secondary cities outside Metro Manila,” CPG said in a disclosure to the Philippine Stock Exchange.

UBS, in a research note, said CPG had very limited projects, and thus saw the need to boost its  landbank especially in key areas like Pampanga, Cebu and Cagayan de Oro.  UBS  has a “buy” rating on CPG with price target of P2.60 per share.

CPG has been in the real estate business for 26 years, having completed 21 condominium buildings for a total of 5,560 units delivered with a total gross floor area of 669,857. It is currently managing 50 properties.

Led by the Antonio family, CPG has been in the real estate business for the last 26 years. It is the developer behind such prestigious projects as the Azure Urban Resort Residences in Parañaque City, with a beach club designed by 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.