Century Properties to fully own PHirst as Mitsubishi sells stake
CENTURY Properties Group, Inc. is set to acquire full ownership of its two affordable housing subsidiaries as its Japanese partner Mitsubishi Corp. has decided to sell its share, the listed developer said on Wednesday.
“This acquisition is part of the group’s strategic move to consolidate interests in the business segment where the market is robust, allowing us to create more value for our stakeholders, contribute more to serving the needs of our fellow Filipinos for decent, quality and affordable first homes while helping address the huge housing backlog that the administration is working on,” said Century Properties Executive Chairman Jose E.B. Antonio in a statement.
The company said the acquisition of the full stake in PHirst Park Homes, Inc. and Tanza Properties, Inc. was due to Mitsubishi redirecting its focus to other market opportunities in the country and the Asian region.
“As [Mitsubishi] has already achieved its optimal goal for this particular investment, we believe that it is the ideal opportunity to pursue new seeds of growth in other emerging markets both in the Philippines and the Asian region,” said Takuya Kuga, Mitsubishi executive vice-president and group chief executive officer for urban development.
The joint venture was initially launched in 2017 with Century Properties owning 60% and Mitsubishi acquiring 40%.
Century Properties said in a separate disclosure that its board of directors on May 31 approved the acquisition of Mitsubishi’s 40% stake or 1.06 billion shares valued at P1 apiece and its 256,000 preferred B shares valued at P1,000 each.
“The said acquisition is subject to agreed conditions precedent and credit and regulatory approvals, including the Philippine Competition Commission,” the company said.
Once a decision has been made, both parties are to execute a deed of absolute sale of shares and a closing transaction.
Additionally, Century Properties said that it would explore, with Mitsubishi, new asset classes in real estate to coinvest in.
Century Properties President and Chief Executive Officer Marco R. Antonio said that with the success of their partnership, “the two companies maintain a solid relationship and will continue to explore opportunities for future collaborations.”
“In fact, plans are already being arranged to talk about the next [Century Properties-Mitsubishi] venture,” he added.
Meanwhile, the company said that is set to achieve the launch of 15 projects during the year, which began with the launch of three flagship developments in Laguna, Batangas, and Bataan provinces under its new subsidiary Century PHirst Corp.
“We remain cognizant of the strong fundamentals of the affordable housing market,” Mr. Antonio said “Century Properties is committed to meeting the housing needs of first-time homebuyers and will continue to explore opportunities to expand its portfolio.”
PHirst, which targets first-time homebuyers, has projects in Lipa and Batulao in Batangas; San Pablo and Calamba in Laguna; Naic, General Trias and Tanza in Cavite; Baliwag and Pandi in Bulacan; Tayabas in Quezon; Magalang in Pampanga; Balanga in Bataan; and Gapan in Nueva Ecija
On Wednesday, Century Properties’ shares rose 1.37% to close at P0.37 each. — Adrian H. Halili