Posted on September 08, 2015 09:29:00 PM [ BusinessWorld Online ]
JAPANESE conglomerate Mitsubishi Corp. and Century Properties Group, Inc. have formed a joint venture company that will build a $100-million (P4.5-billion) rental building in Makati that will carry the Forbes brand.
Mitsubishi will own 40% of Century City Development II Corp.(CCDCII) -- the joint venture firm -- while the Philippine-listed builder, through subsidiary Century City Development Corp., holds the remaining 60%, Century told the stock exchange confirming an earlier report by the Nikkei.
The commercial building will be called the Forbes Media Tower.
CCDCII will finance the 35-storey project through a combination of P2.3-billion equity infusion from the Century unit and Mitsubishi, and a ten-year P2.2-billion senior loan granted by the Bank of Philippine Islands.
The partnership with Century Properties marks Mitsubishi’s third investment in the Philippine real estate sector and the first in office development, Mitsubishi Senior Vice-President Nobuya Ichiki was quoted as saying in a statement issued by Century.
The Japanese conglomerate has invested in an industrial park and a residential project in the country.
“Among all countries, Mitsubishi believes Philippines has the promising market due to its continuous high economic growth,” Mr. Ichiki said in the statement.
Mitsubishi has real estate projects in Japan, China, United States, and countries in Southeast Asia.
“Forbes Media Tower will be a stellar addition to the office market in our country’s premiere financial district,” Century Properties Chairman and President Jose E.B. Antonio said.
Forbes Media Tower, which is scheduled for completion in 2019, will have a total gross floor area with parking of approximately 95,000 square meters. Net leasable area will be over 50,000 square meters.
The land that will house the Forbes Media Tower is the last parcel to be developed within Century City, the listed firm’s 3.4-hectare integrated vertical mixed-use complex in Makati City, and one of three Class A commercial buildings that the property developer expects to add to its portfolio by 2019.
“The sector is awash with opportunities for commercial infrastructure as the country continues to attract BPO and multinational companies... Century targets to be a significant participant in the growth of the office space sector by 2018,” CCDC Director Marco R. Antonio said.
Century Properties’ commercial portfolio will reach over 190,000 square meters within the next four years.
The company’s shares added a centavo or 1.59% to close at 64 centavos yesterday. -- K.A.M. Montealegre