Posted on July
23, 2014 11:13:33 PM [ BusinessWorld Online ]
LUXURY CONDOMINIUM developer Century
Properties Group, Inc. is moving to expand its commercial leasing business
further to ensure a “more stable and predictable” revenue stream in the coming
years.
The company currently has six
commercial projects with a total of more than 150,000 square meters (sq.m.) of
leasable space that may generate up to P1 billion worth of revenue upon
completion in 2019.
On the sidelines of the company’s
annual shareholders’ meeting on Wednesday at the Century City Mall in Makati
City, Century Properties Chief Financial Officer Jose Carlo R. Antonio said the
company is targeting a 15% to 20% contribution from recurring income by 2019.
At present, recurring income accounts
for only 2% to 3% of the company’s earnings before interest, taxes,
depreciation and amortization, he said.
The newly opened P1.4-billion Century
City Mall -- which marked the company’s foray into the retail business last
March -- is expected to bring in P100 million in income annually starting next
year.
By the end of the year, the company
will turn over its health care building -- the 28-storey Centuria Medical
Makati in its master-planned development called Century City.
Other recurring income streams in the
pipeline are the luxury tower Century Spire in Makati City, Forbes Media Tower,
Asian Century Center in Bonifacio Global City, and the soon-to-be-launched
Tower 6 of the Acqua Private Residences in Mandaluyong City.
Century Spire will house a combination
of residential and office units, while the Forbes Media Tower and Asian Century
Center -- located in Makati City and Bonifacio Global City, respectively -- are
both office towers exclusively and are expected to benefit from the continuous
growth of the business process outsourcing sector.
The Forbes Media Tower is a
partnership with the Forbes Media Group, publisher of Forbes magazine, while
Asian Century Center is a joint venture with Asian Carmakers Corp. It will
house the largest showroom of upscale car brand BMW, as well as Asian
Carmakers’ headquarters.
“The company is now evolving from
being a top residential developer in Metro Manila to a leading well-diversified
real estate developer with significant recurring and predictable revenue
streams,” Century Properties Chairman Jose E.B. Antonio said.
In the past 28 years, Century
Properties completed 25 condominiums with a total of 873,127 sq.m. and 8,777
units.
The company’s first-quarter net income
rose 2% year on year to P513.062 million.
Consolidated revenue rose 10% to P2.85
billion, while revenue from real estate sales rose 8% to P2.39 billion.
Century Properties shares on Wednesday
fell one centavo or 0.76% to close at P1.31. -- Daphne J. Magturo
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