CPG earmarks P30-B capex as it veers away from luxury condos » Manila Bulletin Business

Manila Bulletin Philippines

Breaking News from the Nation's leading newspaper


Online Newspaper

Showbiz and Celebrity News

Sports News

World News
News Asia

CPG earmarks P30-B capex as it veers away from luxury condos


By James A. Loyola

Century Properties Group (CPG) is allocating P30 billion for capital expenditures (capex) in the next three years to further drive the expansion of its recurring income and housing portfolio and complete existing projects.

In an interview after the firm’s annual stockholders’ meeting, newly-elected CPG President and Chief Executive Jose Marco Antonio said the capex will allow them to expand its three business segments: Affordable housing, urban villages and leasing assets.

“We want to equally grow them to eventually contribute a third of our business. So one could assume a third will come to commercial leasing, a third would be going to affordable home, then a third will be going to the new in-city condos,” he said.

Antonio noted though that “capex for commercial leasing assets are higher in terms of requirements. Definitely it does not generate any presales, revenues and collections. So given the one third target, a little bit more will be geared towards the commercial leasing portfolio.”

CPG Chairman Jose E. B. Antonio said that, from 133,000 square meters of leasing assets the company grew this to 307,000 in the last three years with a forecast of P2-billion leasing revenues by 2020. New leasing projects will rise in Pampanga, Quezon City, and Makati.

After its recent expansion to horizontal affordable housing through PHirst Park Homes in partnership with the global business enterprise Mitsubishi Corporation, GPG has successfully increased by three times its leasing assets.
It is also embarking on a new line of in-city residential developments called Urban Villages in the next 12 months.

The new Urban Village concept will be mid-rise condominiums catering to the country’s young workforce. These will rise in the CBDs and its peripheries in Quezon City, Mandaluyong, and Pampanga.

Aside from horizontal affordable housing, its recurring income portfolio of leasing assets and new line of Urban Villages, it is also focused on its leisure and tourism business.

Its first leisure homes development, Batulao Artscapes in Nasugbu, Batangas, has sold 70 percent of 672 launched units, equivalent to P2.9 billion in sales value as of December 2018.

All these projects cover 250.6 hectares of land bank that CPG is building to further expand its footprint in-city, in strategic tourism destinations and provincial growth centers within Luzon.

“Year 2018 was exciting and fruitful for CPG. We now look forward to an even brighter 2019 and beyond, where you will see much of our business strategy in full motion, our revenue mix transform, and your company in a renewed and excellent form to generate further growth,” Antonio said.

Related Posts