Century Properties to raise P3B

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    Century Properties Group (CPG) Inc. said it looks to raise P3 billion through the issuance of preferred shares.

    The company looks to offer to the public 30 million preferred shares, divided into an initial tranche of 20 million shares and another 10 million covering the greenshoe option. The issue carries a dividend rate of 6.7177 percent and is for sale at P100 apiece.

    Dividends shall be paid quarterly, every January 10, April 10, July 10, and October 10 of each year.

    In a statement, CPG said proceeds will be used to fund its expansion into the commercial leasing business, specifically for a new office development and to fund the capital expenditures of its leasing projects.

    The offer period will be from Dec. 16, 2019 to Jan. 3, 2020 while the target listing date will be on January 10.

    The preferred shares will be issued out of the unsubscribed capital stock of the company and will be listed on the main board of the Philippine Stock Exchange.

    China Bank Capital Corp. serves as the sole issue manager, lead underwriter and sole bookrunner.

    Ponciano Carreon, CPG chief finance officer, said the offering is part of the company’s bullish business expansion.

    “From being primarily focused on high rise condominiums, the company rolled out a diversification program four years ago to enter into allied real estate segments: affordable horizontal housing business outside of Metro Manila through the brand PHirst Park Homes, commercial leasing to boost its recurring revenue streams, and a new line of in-city developments with medium-rise buildings,” he said.

    Early this year, CPG successfully raised P3 billion from a bond offering that will be used for its affordable housing and townhome projects.