By Neil
Jerome C. Morales (The Philippine Star) | Updated July 2, 2013
MANILA,
Philippines - Century Properties Group Inc. is expanding its project portfolio
to take advantage of the growth in the commercial, office and tourism segments.
Developments
of business process outsourcing (BPO) offices, resorts and malls will
complement strong residential sales, company officials said.
The property
firm is jumpstarting its plan to build 100,000 square meters of commercial
space in three years with the construction of four BPO towers totaling 30,000
sqm., said Century Properties co-chief operating officer Jose Marco Antonio.
The towers
will be built under a long-term lease and will increase available office space
in Bonifacio Global City in Taguig.
“We will be
targeting the BPO industry as well as corporates and this is in our continued
thrust for diversifying our income streams to recurring income businesses,”
Antonio told reporters.
“Vacancy
rates in multiple central business districts are very low at around three
percent,” Antonio said.
Century
Properties is also in advanced discussion for another joint venture office
building in Taguig and a office land purchase in Makati, Antonio said.
In terms of
commercial space, the firm is scheduled to complete the five-story Century City
Mall in Makati late this year while the construction of the 28-story Centuria
Medical Makati will be completed in 2014.
On tourism,
Century Properties will roll out its first hotel project in Palawan late this
year or early 2014.
“We have a
vision of being a significant player,” Antonio said, adding that tourism is a
sunrise industry given the rich natural resources of the Philippines.
Projects that
will bring in recurring income are seen to complement the continuous growth of
the residential sector.
Net income
and pre-sales is targeted to reach a record P3 billion and P30 billion,
respectively, by 2015 through existing inventory, unlaunched projects and
leasing portfolio.
In the first
half, Century Properties reported that its pre-sales jumped 13.3 percent to
P12.1 billion from P10.7 billion in the same period last year. This makes the
company on track to hitting a record P24 billion in pre-sales for the entire year.
Strong
pre-sales were attributed to projects like the Trump Tower in Makati, Azure
Urban Resort Residences in Parañaque and the Residences at Commonwealth in
Quezon City.
Century
Properties is also expanding to Central Luzon for the first time. It is in
advanced discussion with land owners for a mixed-use development focusing on
the affordable residential segment in Pampanga.
“Pampanga is
a geographical diversification in key secondary cities,” Antonio said, adding
that overseas Filipinos want to buy properties in Pampanga.
For this
year, Century Properties allotted P7 billion for its capital expenditures that
will support the construction of new buildings, Antonio said.
“We have
barely scratched the surface in terms of addressing the rising demand for
housing, given the country’s strong macroeconomic and real estate fundamentals
that we foresee will continue to sustain the demand in the coming years,” said
Century Properties chief finance officer Jose Carlo Antonio.
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