CPG steps up diversification efforts
Antonio family-led property developer Century Properties Group (CPG) is venturing into a new line of affordable medium-rise residential condominium hubs within major central business districts or their peripheries, creating a new revenue streams from projects with faster construction cycle.
Investing in these new medium-rise buildings under a new business called “Urban Villages” is part of CPG’s expansion and portfolio diversification program, which will require P30 billion in capital spending for the next three years.
The group is investing in a new line of coliving or dormitory buildings for young professionals and students alongside its foray into affordable horizontal housing and leisure and tourism-oriented developments.
Jose Marco Antonio, the newly installed CPG president and chief executive officer, told reporters after the company’s stockholders meeting on Friday that his vision was to “transform the company from a single-asset class residential condominium developer to one that is going to be supported by businesses withe exciting growth fundamentals and growth prospects.”
Outside of its residential developments, CPG has tripled its leasing assets in the last three years to 307,000 square meters. By 2020, annual recurring income from leasing is targeted to reach P2 billion. In the years ahead, new leasing assets are expected to rise in Pampanga, Quezon City and Makati.
For Urban Villages, Antonio said four projects under this new segment would be launched this year in Mandaluyong, Quezon City and greater Pampanga area.
“We now expect this to be much more condensed, with construction cycle of two years or less,” Antonio said.
A faster construction turnaround also allows the developer to recognize revenues from sales faster, based on accounting rules that require percentage of completion in revenue recognition, compared to higher buildings that take over five years to construct.
Antonio said demand for residential space remained high in Metro Manila, which is highly populated but whose people enjoy rising purchasing power. These are seen to fill demand for “conveniently located and well-planned homes fitted with modern social spaces at attainable prices.”
On leisure estate development, CPG’s Batulao Artscapes in Nasugbu, Batangas, has sold 70 percent of its 672 launched units, translating to P2.9 billion in sales value as of end-2018.
CPG has an existing land bank of 250.6 hectares.
