Century Properties Boosts Tourism Portfolio
CENTURY Properties Group, Inc. has partnered with a group of landowners to have a resort developed in Batangas, boosting further its tourism-related portfolio.
Century Properties, one of the most active property developers in the Philippines, has formed a joint venture with Group Developers, Inc. Caylaway Development Corp. and Batulao Bio-loop farms, Inc. which would develop a 142-hectare property in Batulao Batangas.
Property consultant Colliers, Inc. recently identified Century Properties as one of the most aggressive developers in the market, having grown its market share to 10 percent in the upper-middle market segment as of September last year from 6 percent the previous year.
The Batangas property will be developed into a "leisure and resort community estate for both the local and foreign markets," said Century Properties Group.
The project, whose details have yet to be released by Century Properties, will complement the company's medical tourism portfolio being developed under Centuria Medical City located in the company's mixed-use community development Century City - the site of the old International School of Manila in Makati City.
In Centuria Medical City, Century Property is spending $100 million for the mainly outpatient medical complex which is being put up in partnership with Dow-listed General Electric (GE).
Centuria Medical Makati is being positioned as the next "world-class outpatient medical arts building" in Makati catering to both local patients and medical travelers. Its 28-floor structure can accommodate more than 500 clinic spaces.
Century Properties said Centuria "will use the latest technology and equipment that will enable doctors to practice their disciplines with great ease, as well as provide fast and convenient services to patients."
"The building will comprise doctors' clinics specializing in different disciplines of medicine; floors devoted to diagnostic equipment and services; rooms for aesthetic procedures; recovery suites; cafes and restaurants; a VIP lift, and units for other service providers in health, wellness and preventive medicine," the company said.
Under the partnership, GE will be responsible for best practice model and for the equipment and would act as a consultant for the formation of an in-house team that would operate the facility.
Centuria Medical City is seen to generate about 5,000 jobs upon the start of operations in the latter part of 2013 or early 2014.
Century Properties is positioning itself in the tourism business as the government eyes to improve the tourism market.
Jones Lang LaSalle Leechiu, another property consultant, said tourism is the next sector to grow in the Philippines as the government works to prop up the industry.
Tourism prospects in the Philippines "could be the same" as in Thailand if not more, according to Leechiu, once "familiar global brands" come to Philippine shores.
The property consultancy firm said tourism-related growth could spring up "all over the Philippines" particularly when the government starts opening up the other international airports in the country like Bacolod, and Iloilo and once it allows increased flights into and out of Diosdado Macapagal International Airport, in Clark Pampanga.
About 4,000 to 5,000 hotel rooms are under construction and set for completion by 2014 in PAGCOR City in Pasay City, which also offers good prospects for the country's gaming industry.
In the medical tourism segment, Asia is becoming a preferred destination. About 62 percent of the $25.3 million revenue in the Philippines for 2010 was attributed to foreign clients who opt to have their medical needs attended locally.
It is estimated that some 600,000 medical travelers arrived in the Philippines that year.
The Philippines expects to generate $3 billion in revenues from medical tourism by 2015, with as much as 1 million foreign patients arriving annually.
There are about 30-member hospitals, clinics, wellness center and resorts, that comprise the Philippine Medical Tourism industry.
Medical tourism is also popular in countries like Singapore, Thailand, Malaysia, and India.
A 2008 McKinsey and Co. Report states that 40 percent of medical tourists seek advanced technology, 32 percent better healthcare, 15 percent faster medical services, while 9 percent seek lower healthcare costs.
Globally, the health and wellness industry is estimated to have reached $ 2 trillion, with the biggest moneymaker being the beauty and anti-aging industry, hauling in $679 billion.
Century Properties said that research shows that the Philippines has an even bigger potential in attracting medical tourists because of its culture of hospitality, quality healthcare services, competent medical practitioners, and cheaper medical treatments of as low as 70 percent compared to other Asian countries.
Century Properties in the first 10 month of 2011 posted profits of P781 million, up from the previous year's P143 million.
Century's pre-sales data indicated that it pre-sold P18.4 billion for the full year 2011, which equals 129 percent growth as compared to its P8 billion in pre-sales for the full year 2010.
On a unit basis, Century pre-sold 5,367 units for the full year 2011, as compared to 2,325 units for the full year 2010. Century believes it was able to attain this sales growth in large part due to its efforts to sell to Filipinos living overseas, as well as foreign nationals.
Approximately 67 percent (in terms of value) of Century's pre-sales came from international markets.
Jose Carlo Antonio, Century's chief financial officer said that for 2012, the company plans to have a capital expenditure budget of P7.3 billion to P8.3 billion.
This year, Century is planning to launch a 4.4-hectare project along Commonwealth avenue in Quezon City to offer approximately 2,000 affordable housing units.
Century is also constructing a lifestyle center that is expected to include a variety of retail offerings to complement its existing developments in Century City.
Century has four current masterplanned developments, namely Century City in Makati City, Canyon Ranch in Cavite, Azure Urban Residences in Paranaque City and Acqua Residences in Mandaluyong City. Upon full completion, these four master planned developments are expected to contain 23 condominium buildings with 15,703 condominium and office units, and 955 single detached homes, with a total expected gross floor area of 1,185,024 sq.m.
Source: Malaya Business Insight | February 16, 2012
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