Century City Development Corporation (CCDC), a subsidiary of Century Properties Group, Inc. (CPGI) and Mitsubishi Corporation (Mitsubishi), one of Japan’s oldest leading conglomerates, have signed a joint venture agreement to develop the world’s first Forbes Media Tower, a 35-storey office building that will soon rise at Century City, Makati, Philippines.
Under the agreement, both parties will develop, lease out and maintain Forbes Media Tower through Century City Development II Corporation (CCDCII), of which CCDC and Mitsubishi have 60% and 40% ownership, respectively.
CCDCII shall finance the projected Php4.5 billion total project cost through Php 2.3 billion of equity from CCDC and Mitsubishi, and a ten year Php2.2 billion senior loan granted by the Bank of Philippine Islands. BPI has approved the loan on the basis of the project’s strong financial viability amidst the rapidly growing office space sector and its confidence in the combined strength and experience of Century and Mitsubishi. Primeiro Partners advised on the structuring of the financing, and acted as the exclusive financial adviser to the joint-venture partnership transaction.
“We are privileged to partner with Mitsubishi Corporation, one of Japan’s most respected business conglomerates, in developing Forbes Media Tower. We are grateful for their trust and confidence, as these are testament to our sound business strategy of developing projects with determined demand. Forbes Media Tower will be a stellar addition to the office market in our country’s premiere financial district,” said CPGI Chairman and President Jose E.B. Antonio.
“Mitsubishi has invested in two Philippines real estate development projects, one for industrial park and another for residence. This one will be the third development project and the first office development. Mitsubishi executes real estate development projects in Japan, China, United States, and the countries in South East Asia Region. Among all countries, Mitsubishi believes Philippines has the promising market due to its’ continuous high economic growth. We hope to continue and further strengthen our partnership with CPGI to expand real estate investment business in the Philippines” said Mitsubishi Senior Vice President Nobuya Ichiki.
Forbes Media Tower is scheduled for completion in 2019. It will have a total gross floor area with parking of approximately 95,000 square meters. Net leasable area will be over 50,000 square meters.
As the world’s first Forbes-branded commercial building, it is designed to serve the world’s business leaders by providing an environment to conduct business with premium amenities. Forbes Media Tower is the last parcel of land to be developed within Century City, the 3.4 hectare integrated mixed-use complex of premium residential high-rises such as the Gramercy, Knightsbridge, Milano Residences, Trump Tower, and Century Spire, the lifestyle center Century City Mall, and the outpatient medical center Centuria Medical Makati.
Century Properties’ commercial portfolio will total over 190,000 square meters within the next four years. This includes the five-level and 50,000-square meter Century City Mall and the 28-storey Centuria, which has both for sale and for lease medical IT units. Forbes Media Tower is one of the three Class A commercial buildings that Century expects to add to its portfolio by 2019.
Date: 14 Sep 2015