DEVELOPER Century Properties Group Inc. (CPG) said it expects its revenues to hit P1 billion by 2020 or three times more than the current one when all of its buildings and commercial projects are fully leased out.
The company said it had to branch out to other sectors of property development, such as economic housing and tourism development, in order to deepen its revenue source, since, eventually, it will run out of units to sell in its flagship Century City, the former site of the International School.
CPG Chairman Jose E.B. Antonio said the company is projecting a double-digit profit growth rate this year, in the mid to high teens, as its diversification efforts start to pay off.
Antonio, a former Philippine ambassador to the United States, said revenues would come from its traditional high-rise projects, as well as its new affordable housing business and recurring income sources.
“We have four pillars now. Before, we had only one source of income of vertical developments. Because of that, I think the company, and I’m positive, will grow in much bigger annual rates than before because we now have four sources. Not only will it grow; you mitigate the risk of cyclicality by diversifying your portfolio,” he said at the sidelines of the company’s stockholders’ meeting on Thursday.
These so-called four-pillars are its in-city developments that include residential condominium projects, investment properties, horizontal affordable housing outside of Metro Manila, and leisure and tourism.
CPG will continue to earn from the completion of their vertical developments which has sold 91 percent of over 19,000 units launched, the company said.
“There are no more marketing risks for these, and all we have to do is complete the buildings and we’re done,” he said. The company said it will continue to launch new projects in Metro Manila, ranging from mid-rise buildings, townhomes and mixed-use projects targeted for the mid- to high-end market.
“There’s still a big demand for young couples to have their own homes that are bigger than the condominiums, so we’re talking of spacious projects that will really be family-oriented,” Antonio said.
Its leasing business, meanwhile, also continues to grow coming for a steady stream of revenues. This year, it will complete Asian Century Center, a 22-story office building in Bonifacio Global City in Taguig.
Last year, however, leasing revenues were flat at just around P341.7 million.
