CPG issuing up to P3-B retail bonds

Century Properties Group Inc. (CPG) is planning to raise up to P3 billion from the issuance of fixed rate retail bonds.

In a disclosure to the Philippine Stock Exchange, the firm said this will be the Second Tranche Offer of its P6 billion Debt Securities Program Shelf Registration and will consist of the principal amount of P2 billion and an oversubscription option of up to P1 billion.

CPG said it has received a Credit rating of “AA+” Issuer Rating Upgrade from the Credit Rating and Investors Services Philippines, Inc. (CRISP).

The Issuer Rating Upgrade was based on the CPGI’s diversified market portfolio and a strong, growing presence in a traditionally competitive market.

CRISP considers as strategically beneficial to CPGI’s market position its move to diversify its market portfolio.

CPG has solidified its strong presence in the vertical housing market with 30 vertical housing developments with a total ground floor area of over 1.24 million square meters and a total of 17,481 residential units completed.

Its entry into the horizontal affordable housing development market in 2017 provided opportunities for the company to capture a share in a traditionally reliable property market segment.

Within a relatively brief period, CPG’s joint venture brand with the Mitsubishi Corporation, PHirst Park Homes, has launched 16 home communities on 293 hectares of land with over 19,800 units valued at P34.4 billion in eight provinces in the country’s main island of Luzon.

As of yearend 2022, PHirst Park Homes has sold 13,983 units valued at P24.6 billion and completed 6,002.

CPG’s portfolio also includes 5 leasing assets with aggregate Gross Leasable Area of 146,670 square meters. These include the Century City Mall, Centuria Medical Makati, Asian Century Center, Century Diamond Tower and the recently opened Novotel Suites Manila.

The firm has also established its name in the property management sector with over 100 buildings covering 3.45 million square meters that include notable properties like office buildings, condominiums, major banks, medical facilities, an embassy, and a school.

In 2022, CPG’s diversified portfolio consists of a more diversified revenue mix of vertical (43 percent), affordable housing (42 percent), commercial leasing (11 percent), and property management (4 percent).

Meanwhile, affordable housing presents a higher Net Income After Tax share at 73 percent, followed by commercial leasing at twenty percent.

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The article was originally published in Manila Bulletin and written by James A. Loyola.