By Jerome C. Morales (The Philippine Star) | Updated June 12, 2013 - 12:00am
MANILA, Philippines - Century Properties Group Inc. has secured P4.2 billion in fresh funding to bankroll several project developments, the company told the Philippine Stock Exchange yesterday.
In a disclosure, the upscale property developer said it raised the amount billion through a five-year, dual-currency secured loan arranged by Standard Chartered Bank.
“The proceeds from the transaction will be used to meet the construction costs, land cost, general expenditure and financing costs exclusive to seven buildings located across three project developments of Century Properties,” the company said.
The seven pre-sold projects are targeted for turnover between 2015 and 2017.
Century Properties chief operating officer Jose Carlo R. Antonio said the loan facility lowers the company’s cost of debt.
“In addition, it provides Century Properties the financial flexibility by allowing profits from completed and soon to be completed projects, as well as funds raised from Century Properties’ recent equity placement, to embark on growth opportunities to enhance shareholder value,” Antonio said.
The company has budgeted between P7 to 8 billion for its capital expenditures this year.
The loan facility, which targeted both domestic and international banks, received commitments in both US dollar and Philippine peso.
“The company believes that the success of this transaction demonstrates the continued confidence of the banking sector in the real estate industry,” Century Properties said.
The firm forecasts a three-year compounded annual growth rate of 15 percent, expecting pre-sales to hit P30 billion and net income to reach P3 billion by 2015.
In the first quarter, the company’s earnings grew 10 percent to P501 million, driven by higher residential sales.
Century Properties currently has five key projects totaling 31 buildings and 955 single-detached homes.
With 27 years in the business of real estate development, marketing and property management, Century Properties has completed 21 condominium buildings (5,560 units) with a total gross floor area of 669,857 square meters and is managing 50 properties as of end-2012.