Antonio family’s Century Properties gets SEC OK to issue P6B fixed-rate bonds

Century Properties Group has secured the approval of the Securities and Exchange Commission to raise P6 billion from the issuance of five-year fixed-rate bonds.

The bonds may be offered in one or more tranches within three years.

For the first tranche, CPG will offer up to P2 billion worth of fixed-rate bonds due 2027, with an oversubscription option of up to P1 billion.

Net proceeds from the offer could amount to P2.94 billion, assuming the overallotment option is fully exercised.

Proceeds will be used to partially refinance the company’s debt, fund capital expenditures for horizontal affordable housing developments, and fund general corporate requirements.

The offer period will run from Feb. 14 to 18 with the bonds targeted to be listed on the Philippine Dealing & Exchange Corp. on Feb. 24.

China Bank Capital Corp. is the sole issue manager, sole lead underwriter, and sole bookrunner for the offer.

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For the long haul: Jose Antonio’s Century Properties and Mitsubishi to take partnership to new heights

Century Properties Group Inc. (CPG) and Japan’s biggest trading house Mitsubishi Corp. are ready to take their partnership to the next level.

In 2016, Antonio-led CPG forged a strategic partnership with Mitisubishi to enter the affordable housing segment. Their joint venture company, Phirst Park Homes (PPHI) has become a significant growth driver for CPG.

CPG president and CEO Marco R. Antonio said the group plans to expand its partnership to include non-residential projects to take advantage of new growth opportunities.

“Our idea here is to increase and broaden our presence in addressable markets via new products, new formats, and in more segments” he said

CPG executive chairman Jose E.B. Antonio said the international experience of Mitsubishi, “being one of Japan’s most respected business groups, would further add to the combined group’s experience and business strategies.”

For his part, Mitsubishi COO for Urban Development Naoshi Ogikubo said they would ensure
the company’s cooperation with CPG.

 “Our team would like to work hard with you and make sure to go into the new growth stage,” he said.

For the first nine months, PPHI contributed P2.76 billion to CPGI’s consolidated revenues of P6.07 billion.

PPHI’s projects in Tanza, Cavite; Lipa, Batangas; San Pablo, Laguna; Pandi, Bulacan; Calamba,Laguna; Nasugbu, Batangas; Magalang, Pampanga; General Trias, Cavite; Tayabas, Quezon; and Baliwag, Bulacan, have enjoyed tremendous success, with 73% of the company’s 13,829 units of inventory valued at P16.9 billion already pre-sold as of end-September

Ricky M. Celis, president and CEO of PPHI, said they plan to “bring their core product offering to a nationwide scale,”

SOURCE: Bilyonaryo

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Century Properties to roll out affordable housing units in high growth areas

Taking advantage of the strong demand for affordable housing in the country, bilyonaryo Jose E.B. Antonio’s Century Properties Group is launching new house and lot communities under its joint venture with Japanese conglomerate Mitsubishi Corp.

In a statement, CPG said new affordable housing units under the brand PHirst Park Homes would rise in the high-growth locations of Cavite, Bulacan and Quezon in the second half.

The high-margin segments of affordable housing and office leasing proved to be resilient, contributing 93 percent to CPG’s P1.15 billion net income last year. Affordable housing alone pumped in 35 percent or Ph398 million compared to 24 percent in 2019.

CPG’s 2020 profit was 22.2 percent lower than the previous year as revenues declined by 24.3 percent to P10.84 billion due to the disruptions caused by the coronavirus pandemic.

CPG chief financial officer Ponciano S. Carreon, Jr. said the decline in the company’s revenues and net income were within the expected levels given the significant impact of quarantine restrictions that drastically slowed down sales, collections, and construction activities.

Carreon said CPG would continue pursuing a balanced mix of revenue sources to ensure diversified revenue streams.

The company successfully trimmed interest-bearing debt and decreased borrowing costs further by130 basis points last year., The operating efficiencies instituted by CPG allowed it to reduce the overall operating expenses by P 311million or about 9.6percent year on year despite the additional expenses booked in the fourth quarter to cushion the further expected prolonged softening of the market.

 SOURCE: Bilyonaryo

 

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