PROPERTY developer Century Properties Group (CPG) Inc. is allocating some P30 billion in capital expenditures for the next three years to expand its business of now mainly affordable horizontal housing projects, office leasing and condominium operations.

CPG President and CEO Marco R. Antonio said capex, for which it plans to spend an average of P10 billion a year, will be funded by credit facilities from the banks, and fund-raising from the capital and bond markets.

The firm listed its preferred shares last Friday, raising some P3 billion from the issuance.

“With the acceptance of the bond and equity markets, we would like to take advantage of the atmosphere. At the opportune time, if the investors continue to support us, we hope to go back to the market,” Antonio said.

“As interest rates continue to come down, our cost of borrowings are also coming down,” he added.

CPG, which has concentrated its efforts on horizontal development after it is running out of vertical projects to build, is currently planning a mixed-use development for a significant size of land in Novaliches, Antonio said.

“We are launching a new brand in terms of our condos that’s going to be, instead of high rise, it will be mid-rises, and that’s going to be in multiple locations,” Antonio said.

“If there is a backlog of 6 million outside Metro Manila, there is actually a backlog of a million within Metro Manila for value-oriented affordable condos with a price point of around P3 million to P5 million. That’s going to be an exciting new chapter for Century,” he added.

CPG aims to change its revenue mix by increasing the share of its office leasing and affordable housing businesses.

“We’re coming from a [mix of] 85 percent condo and around 10 percent affordable and 5 percent for leasing. This year we still expect our main revenue drivers to be our condo…but the contribution of affordable housing is accelerating. What was coming from a negligible number like 10 percent to 11 percent, that should further rise to mid-double digits; and then leasing, coming from 5 percent now, should be closer to maybe more than 10 percent this year,” he said.

For condominium units, Antonio said CPG currently has around P26 billion unbooked revenues, and around P16 billion to P18 billion of unsold units.

“That will continue to be a revenue driver,” he said.

For project launches, Antonio added that CPG will launch three to four affordable housing projects this year.

“In terms of leasing, we continue to be building a couple of buildings, or one to two buildings every year,” he added.

CPG’s preferred share offering is its largest equity capital markets transaction to date, and was twice oversubscribed over the P2-billion base issue size, thereby allowing the company to fully exercise its P1-billion oversubscription option.

“We are very happy with the overwhelming market reception to CPG’s first fund-raising exercise in the equity capital markets since 2011. This is a strong vote of confidence in the direction that the management has taken to drive growth for the company, supported by concrete results so far delivered through our positive financial performance over the past several quarters,” Antonio said.