Century Properties Group Inc. (CPG), the property development firm led by the Antonio Group, on Thursday said it is reallocating some of the proceeds of its P2.95-billion preferred shares offering it conducted earlier this year.
In its disclosure, the company said it will use P500 million of the proceeds to acquire the 40-percent stake of Mitsubishi Corp. in Century Diamond Tower which was partially funded by its working capital funds.
Century Diamond Tower is a 41-floor pre-LEED certified office building in Century City, Makati which has 63,000 square meters of gross floor area.
The acquisition effectively gave CPG an additional 25,000 square meter of completed and leased out office leasing space.
“The board considers that the reallocation in the planned use of proceeds is beneficial to CPG’s strategy of growing both its commercial leasing and affordable housing segments in line with the company’s expansion into high-margin businesses,” the company said.
The said P500 million came from the P1.8 billion originally intended for the construction of an office building in Century City Office Building in Makati with an estimated 28,800 square meters in gross floor area to working capital funds of CPG. The reallocated funds will be part of CPG’s general working capital funds 30-days after the board approval on Thursday.
In January the company raised P2.95 billion from the sale of 10 million preferred shares. As of end-September, the company has only utilized a total of P285.65 million with P2.65 billion still unutilized.
CPG earlier said it had P1.1 billion in net income for the nine months of 2020, flat from last year, as its affordable horizontal development and leasing segments supported is operations despite lockdown measures.
The company’s revenues, however, were still down for the period, reaching P8.23 billion, a 15-percent decline from last year’s P9.79 billion.
Ponciano S. Carreon Jr., the company’s CFO and head for investor relations said that despite a dip in revenues, the company’s results for the period are at better-than-expected levels, reflecting the well-timed mitigating measures that it had put in place to avert unfavorable business impacts given the present situation.
“CPG is well-positioned to take on the business challenges in this new normal and navigate through this period while we plan for new launches and continue with our business expansion into our high-margin segments,” he said.
The company’s high-margin businesses posted combined contributions of 25 percent or P1.98 billion of its total revenues, 35 percent higher than P1.46 billion last year.