Century Properties plan to raise P5 billion for 2024 expansion

Property developer Century Properties Group Inc. (CPG) plans to raise up to P5 billion ($93.6 million) from the issuance of preferred shares next year, the company said in a disclosure to the stock exchange on Monday.

CPG’s board approved the issuance of 30 million preferred shares with an oversubscription option for another 20 million shares at P100 ($1.87) apiece.

The preferred shares will be listed on the Philippine Stock Exchange.

CPG said it would use the proceeds from the fundraising activity to redeem three-year bonds issued in March 2021 and fund existing property projects.

It also plans to acquire properties for the planned expansion of its affordable residential business under Phirst Park Homes.

It will also allot a portion of the proceeds to further develop its Azure North—a mixed-use development in Pampanga and for general corporate requirements.

CPG engaged China Bank Capital as the sole underwriter for this transaction.

CPG in July redeemed its P3-billion ($56.2 million) preferred shares issued in 2020 as part of its financial management and debt reduction program to strengthen its balance sheet and support growth expansion.

It also redeemed its P3-billion ($56.2 million) fixed-rate retail bonds in April 2022.

CPG said it is “cautiously optimistic” for 2024 even as the company expects to perform better on robust demand for housing projects.

“Our outlook [for next year] is actually cautiously optimistic. There are many reasons why we believe it’s going to be a good year. Our affordable housing business is growing very rapidly. As you are probably aware, we’ve launched many projects,” CPG president and chief executive Marco Antonio said.

“I think overall, 2024 should be a banner year for the company,” he said.