CPG To Spend Up To P10-Billion In 2019

Increase in CAPEX

Century Properties Group Inc. (CPG) has P8 to P10 Billion capital expenditure on plan to spend this 2019. The shares of this property firm increase by 5.05% yesterday, March 20, 2019, from P0.025 to P0.52. Wondering what is this huge capital expenditure for? To answer that, the firm disclosed that they are planning to acquire more residential, land, and office projects this year. It seems like CPG is challenged by the steep competition in the market. So, what triggers the firm to allocate this CAPEX?

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Bullish Market

This year, CPG is going to acquire and start more real estate projects as they increase their capital spending. What drives the company to do such a big step is the bullish market. During the briefing at Century City Mall, according to its CEO, the market right now is optimistic. The price of stocks is likely to go up. CPG wants to take part in it so to tweak their business and become more efficient. With its P8-P10 billion money allocated for projects, no doubt the firm would reach its target capacity.

Internal Funds and Retail Bonds

If you would ask how would the company raise this fund, the firm also disclosed during the briefing that it would come from internal funds. The company is also set to offer retail bonds which have pending approval from Securities and Exchange Commission and to be favored on March 26. It can be seen that the firm has enough internal funds for the allocation because of its surging net income. In fact, from P650 million net income in 2018, the company took home 72% higher or P1.1 billion. Its revenues also increase by 60% or P10.7 billion during the same year.

CPG Future Plans

The coming months and years would be exciting for CPG. For the past years, the company is experiencing fruitful years with its return going above P1 billion. As of now, the company has 3 residential building, 259 cheap housing units, and an office tower. The firm is looking forward to expand its affordable housing units partnered with Mitsubishi Corporation. PHirst Park Homes community is in fact launched in San Pablo, Laguna just last week. CPG targets to launch 1 project per quarter and if not followed, it’s going to launch 4 by the end of 2019.

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