As the office leasing business has proven to be resilient, Century Properties Group is adding 25,000 square meters of floor area to its commercial leasing portfolio, growing it to 137,000 sqm. of gross floor area this year.
In a statement, the firm said its additional leasing space will come from the acquisition of joint venture partner Mitsubishi Corporation’s 40 percent stake in the newly-completed Century Diamond Tower.
The 41-floor pre-LEED certified office building in Century City, Makati has 63,000 square meters of gross floor area. This will account for a significant bulk of CPG’s recurring revenues in the coming years.
CPG and Mitsubishi entered into a partnership agreement on August 7, 2015 under the joint-venture company Century City Development II Corporation (CCDCII).
With CPG able to realize a good return on investment for its partner, both companies have mutually entered into a buyout transaction for CPG to acquire Mitsubishi’s common shares in CCDCII for P1.9 billion.
The transaction, which was approved by the Philippine Competition Commission on August 11, 2020, will make CCDCII a wholly-owned subsidiary of CPG.
“This acquisition effectively builds up CPG’s recurring income assets in line with our strategy of growing the company’s high-margin businesses including office leasing. This has proven to be a resilient sector by nature of longer-term leases,” said CPG President and CEO Marco R. Antonio.
He added that, “We thank Mitsubishi Corporation for the trust, the fruitful partnership, and its invaluable support to this project. The completion of Century Diamond Tower is a milestone for CPG as we continue in our step forward to balancing our vertical residential and affordable housing portfolio with commercial leasing assets, while maintaining business resilience under the new normal.”
“The Century Diamond Tower, as the first project between Mitsubishi Corporation and Century Properties, literally and figuratively represents the concrete cooperation of the two companies.” said Masahiro Nagaoka, General Manager Asia Real Estate Development Department. He added that, “We express our sincerest gratitude to our partner, Century Properties and to all parties involved in the construction and completion of the Century Diamond Tower.”(