Century Properties Group said Wednesday it is parting ways with long-time partner Mitsubishi Corp. in the affordable housing business as the Japanese company redirects its focus on opportunities elsewhere in the Philippines and in Asia.
The listed property developer said its board approved the company’s purchase of the 40 percent stake of Mitsubishi in PHirst Park Homes Inc. and in Tanza Properties Inc., giving Century Properties full ownership. These companies target first-time home buyers, its projects located in the fringes of Metro Manila.
The PHirst brand has 16 master planned communities covering 293 hectares with 19,869 launched inventory units valued at P34.43 billion as at end-2022
“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, a former Philippine ambassador to the U.S., in a statement.
Financial details of the acquisition weren’t disclosed.
Century Properties said, however, that even after the acquisition it will explore with Mitsubishi “new asset classes in real estate to co-invest in.”
PHirst Park Homes, launched as an affordable housing brand in 2017, will launch 15 projects this year with Mitsubishi. With success in affordable housing, Century Properties announced in 2022 its expansion into other markets, with ventures in the socialized and economic housing, and mid-income residential markets under a new unit Century PHirst Corp.
Mitsubishi executive vice president and group CEO for urban development group Takuya Kuga said in a statement that the sale of the PHirst Park Homes and Tanza Properties is in line with the company’s regional strategy.
“The great outcome that we initially projected (for PHirst Park Homes) to achieve in 10 years’ time has been substantially realized within 5 years. As MC (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,” Kuga said.
“With the success of Century Properties and Mitsubishi Corp.’s 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 CPG-MC venture,” said Century Properties president and chief executive officer Marco R. Antonio.
This transaction is subject to regulatory clearances.
