Century Properties secures funding for affordable housing projects
MANILA, Philippines – Real estate developer Century Properties Group (CPG) raised P3 billion through its retail bond offering, to partially fund its affordable housing and townhome projects.
In a disclosure on Monday, April 15, CPG said it was planning to target P2 billion but was able to oversubscribe amid "significant interest in the offering."
Because of this, the company said that "unsecured fixed rate peso bonds due in 2022 were priced at the tighter end of the indicative spread at an interest rate of 7.8203%."
CPG chief operating officer Marco Antonio noted that this is the company's first corporate peso bond deal for the year, and its first corporate debt capital deal since 2014.
"This marks a significant milestone for CPG as it continues to expand into various asset classes and diversify its funding sources towards becoming a bigger and more profitable company," he added.
Primarily focusing on mid- to high-rise residential properties, CPG expanded to also develop affordable housing. The first in this portfolio is a housing community, Phirst Park Homes, in Tanza, Cavite.
Two more affordable housing communities were launched in Lipa City, Batangas, and San Pablo City, Laguna, bringing a total of 33,000 housing units within the next 4 to 5 years.
CPG posted a 72% increase in its income to P1.1 billion for 2018. The affordable housing portfolio contributed 23% of the total earnings. – Rappler.com