CPG teams up with Mitsubishi to develop Forbes office tower
A UNIT of property developer Century Properties Group (CPG) has teamed up with Japanese conglomerate Mitsubishi Corp. to develop the 35-storey office building Forbes Media Tower that will soon rise at Century City in Makati.
CPG said in a press statement on Tuesday that its subsidiary Century City Development Corp. (CCDC) formed a new venture firm called Century City Development II Corporation (CCDCII) which will be 60 percent owned by CCDC and 40 percent owned by Mitsubishi.
Under the agreement, both parties will develop, lease out and maintain Forbes Media Tower through CCDCII.
The joint venture firm CCDCII will likewise finance the projected $100 million (P4.5 billion) total project cost through $51 million (P2.3 billion) worth of equity from CCDC and Mitsubishi and a 10-year, $49 million (Php2.2 billion) senior loan granted by the Bank of Philippine Islands.
CPG said BPI had approved the loan on the basis of the project’s strong financial viability amid the rapidly growing office space sector and its confidence in the combined strength and experience of Century and Mitsubishi.
“We are privileged to partner with Mitsubishi Corporation, one of Japan’s most respected business conglomerates, in developing Forbes Media Tower. 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,” said CPG chair and president Jose Antonio.
“Mitsubishi has invested in two Philippines real estate development projects, one for industrial park and another for residence. This one will be the third development project and the first office development. 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” said Mitsubishi Senior Vice President Nobuya Ichiki.
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. Forbes Media Tower is the last parcel of land to be developed within Century City, the 3.4 hectare integrated mixed-use complex of premium residential high-rises such as the Gramercy, Knightsbridge, Milano Residences, Trump Tower, and Century Spire, the lifestyle center Century City Mall, and the outpatient medical center Centuria Medical Makati.
“The sector is awash with opportunities for commercial infrastructure as the country continues to attract BPO and multinational companies. Last year, the Bangko Sentral ng Pilipinas forecasted a 15-percent growth for 2015 and expects revenue to overtake OFW remittances within the decade. Century targets to be a significant participant in the growth of the office space sector by 2018,” said CCDC Director Marco Antonio.
