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Century Properties eyes P8-B spending

Posted on February 05, 2012 09:50:13 PM [ BusinessWorld Online ]

ANOTHER DEVELOPER -- this time Century Properties Group, Inc. -- has announced plans to hike capital spending this year over 2011 in a race to serve sustained demand for housing in the country.

The company, which debuted on the local bourse via a back-door listing late last year, is looking to spend P7.3 billion to P8.3 billion for 2012 to fund ongoing construction and a new development in Quezon City, Jose Carlo R. Antonio, Century Properties chief financial officer said in a press statement released over the weekend.

This figure, which is more than triple the P2.6 billion the company spent last year, will be allotted for Century Properties’ four masterplanned communities currently under construction in Makati City, Parañaque City, Mandaluyong City and Cavite province, Mr. Antonio said.

The four developments are projected to grow Century Properties’ portfolio to 1.19 million square meters (sq. m.), equivalent to 23 condominium buildings, 15,703 condominium and office units, and 955 single-detached homes.

This compares against the 548,262-sq.-m. gross floor area of 20 condominium buildings and 4,128 units recorded as of Oct. 31 last year, the press statement read.

For this year, Century Properties is also planning to launch its previously-announced 4.4-hectare affordable housing project along Commonwealth Ave., Quezon City, which will offer 2,000 residential units as well as a lifestyle center that will feature various retail offerings.

Other listed property developers have hiked their respective capital expenditures for 2012 in anticipation of new projects and expansions.

Villar-led Vista Land & Lifescapes, Inc. had said it will be spending more this year versus than the P11 billion it allotted for this year in order to fund four development hubs south of Metro Manila.

SM Investments Corp., which lists shopping malls and condominium development as one of its core businesses, has readied a record P56.8 billion in capital spending for this year, a 20% growth from last year’s P47 billion.

A bulk of this figure will go to residential and commercial property projects a well as new SM mall expansions both at home and in China, SM Investments earlier said.

However, Gokongwei-led Robinsons Land Corp, has earmarked P13 billion for capital expenditures for the 2012 -- slightly lower than the P13.9 billion allotted last year -- to be sourced through cash operations and debt.

Century Properties, a high-rise developer with more than 40 projects in its total portfolio as of last year, has already completed a total of over 22 buildings and 720 homes according to its Web site.

Century Properties more than doubled its pre-selling activity last year to P18.4 billion or 5,367 units versus P8.0 billion or 2,325 units two years ago, reportedly due to its efforts to target foreign nationals as well as Filipinos based abroad.

International markets accounted for approximately 67% of Century Properties’ pre-sales in terms of value, the firm said.

In addition, Century Properties manages 51 properties, including the Asian Development Bank building in Mandaluyong City and the Makati Medical Center.

Century Properties’ shares slid by 0.84% to P2.37 last Friday from P2.39 at its previous close. -- Franz Jonathan G. de la Fuente

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