Century Properties beefs up leasing portfolio

LISTED Century Properties Group (CPG) is set to add 25,000 square meters (sqm) of gross floor area to its commercial leasing portfolio.

In a disclosure on Tuesday, the property firm said the added space would come from its acquisition of Mitsubishi Corp.’s 40-percent stake in Century Diamond Tower in Makati City.

This would bring Century Properties’ total commercial leasing portfolio to 137,000 sqm this year.

The added area would account for the bulk of its recurring revenues in the coming years, according to the firm.

“This acquisition effectively builds up CPG’s recurring income assets in line with our strategy of growing the company’s high-margin businesses including office leasing. This has proven to be a resilient sector by nature of longer-term leases,” Century Properties President and Chief Executive Officer Marco Antonio was quoted as saying in the disclosure.

The acquisition comes after Century Properties and Mitsubishi signed on Aug. 7, 2015 a partnership agreement through Century City Development II Corp. (CCDCII).

They later inked a deal for the real estate company to acquire Mitsubishi’s common shares in CCDCII for P1.9 billion.

The Philippine Competition Commission approved the transaction on Aug. 11, 2020, making CCDCII a wholly owned Century Properties subsidiary.

“The Century Diamond Tower, as the first project between Mitsubishi Corp. and Century Properties, literally and figuratively represents the concrete cooperation of the two companies,” Mitsubishi General Manager for Asia Real Estate Development Department Masahiro Nagaoka said.

Century Properties shares lost 1.41 percent to close at 35 centavos apiece on Wednesday.

Source: TheManila Times