Century Properties secures P4.2-B loan

MANILA, Philippines – Century Properties Group said it has obtained a P4.2 billion loan to finance its upcoming developments.

In a disclosure to the Philippines Stock Exchange on Tuesday, 11 June, Century Properties said it had received a P4.2 billion dual-currency term loan facility, which would go toward financing 3 future development projects. 

Century Properties CFO, Jose Carlo Antonio said the loan facility will lower the company’s cost of debt and secure the company’s working capital requirements for 7 pre-sold projects that are targeted to be turned over to unit buyers between 2015 to 2017.

“The facility provides the company with financial flexibility by allowing profits from completed and soon to be completed projects, as well as funds raised from its recent equity placement, to embark on growth opportunities to enhance shareholder value,” Antonio said.

Standard Chartered Bank arranged the loan while Primeiro Partners was the financial adviser.

The developer has budgeted between P7 billion to 8 billion for its capital expenditures this 2013.

Century Properties earlier announced that it is preparing for its second stage of growth, eyeing a target of P30 billion in pre-sales and a net income of P3 billion at the end of 2013.

The company is also looking at expanding its source of recurring income through its retail project, the Century City Mall, a commercial development that will feature mostly high-end local and world class retail concepts.

During the first quarter of the year, the property firm reported a 10% growth in net income to P501 million from P454 million during the same period last year.

First quarter revenues reached P2.6 billion, up 5% compared to the P2.5 billion during the first quarter of 2012.

Reservation sales increased by 10% to P5.8 billion over P5.3 billion in 2012. Bulk of the reservation sales came from Trump Tower at Century City in Kalayaan Avenue in Malato, Acqua Iguazu zoo inspired by Starck, Azure Urban Resort Residences, and the Residences at Commonwealth projects. – Rappler.com