Century Properties still keen on PAGCOR’s Entertainment City

MANILA, Philippines – Despite an aborted joint venture partnership with Okada group for a casino project in the country, Century Properties Group Incorporated (CPG) said Monday, June 22, that it may still participate in the planned development of government-sponsored Entertainment City.

“There are few parties that are talking us,” CPG Chairman Jose E.B. Antonio said in an interview following the company annual stockholders meeting.

With no further details, Antonio only said that CPG is open to partnering with any of the 4 companies with existing licenses to operate a casino within PAGCOR (Philippine Amusement and Gaming Corporation) Entertainment City.

CPG withdrew its case versus the group of Japanese businessman Kazuo Okada on partnership agreement for a Manila casino project.

“As of now we are not together,” Antonio said.

The disagreement between the two parties over their botched deal to build an integrated resort and casino project in PAGCOR Entertainment City was settled amicably after a top-level meeting involving Antonio and Okada.

Apart from Okada, 3 companies, namely Bloomberry Resorts Corporation of Solaire Resorts & Casino, Belle Corporation and Melco Crown for the City of Dreams Manila and Travellers International Hotel Group Incorporated for the Resorts World Bayshore City, have casino licenses in PAGCOR Entertainment.

Diversifying into allied segments

Meanwhile, Antonio said the company is now focused on a plan to diversify into allied segments of the real estate industry, including horizontal developments or subdivisions (as opposed to condominium buildings), leisure and tourism-related projects to strengthen its portfolio.

Specifically, the company is looking to become a key player in the horizontal housing sector, which is benefitting from rising incomes and low interest rates.

CPG is eyeing to spend P10 billion ($222.03 million) each year until 2020 – more than the average P8.3 billion ($184.28 million) spending from 2012 to 2014.

During the period, CPG will also invest P12 billion ($266.43 million) to roll out 20,000 horizontal housing units; P10 billion ($222.03 million) for investment properties; and P5 billion ($111.01 million) for vertical developments as well as leisure and tourism-related projects. (READ: Century Properties to spend P20B for Palawan project)

“We estimate that these projects can provide higher margins that will result in a higher return on invested capital. And the shorter turnaround of the projects will provide us higher internal rates of return,” Antonio said.

First Novotel Suites Manila

The CPG has announced a partnership with globally-renowned hotel group AccorHotels, for the management of the first Novotel Suites Manila.

Novotel Suites Manila is a 4-star, 310-unit all-suite hotel and residential mixed-used property in the sixth tower of Acqua Private Residences in Mandaluyong City, Metro Manila.

The building will be divided into two areas. There will be about 149 residential units and 310 Novotel suites, 152 of which will be owned and sold as preferred shares under the “fractional” ownership scheme. A CPG subsidiary, Century Limitless Corporation (CALC), the developer of the building, will retain ownership of 158 units for its recurring income portfolio.

Under the “fractional” ownership scheme, CALC can offer a total of 7,904 shares at a price of P167,000 ($3,711.11) to P450,000 ($10,000.82).

Price per board lot or for all 13 shares starts at P2 million ($44.45 million) to about P5.7 million ($126.68 million).

Century’s first hotel development is estimated to be completed in 2019.

With these projects in the pipeline, Antonio is expecting the company net income and revenues to double by 2020. – Rappler.com

$1 = P45.00