A UNIT of Century Properties Group Inc. (CPG) said on Tuesday that it signed a joint venture agreement with Japan’s Mitsubishi Corp. to develop and operate an office building in Century City in Makati City.
Under the agreement, which covers the 35-story Forbes Media Tower, both parties will develop, lease out and maintain the building through Century City Development Corp. II (CCDCII).
Century City Development Corp. (CCDC), the CPG unit that signed the agreement, will own 60 percent and Mitsubishi the remaining 40 percent.
CCDCII will finance the cost of the project pegged at $100 million, or about P4.5 billion, through a $51-million equity from CCDC and Mitsubishi, and a 10-year $49-million senior loan granted by the Bank of Philippine Islands (BPI).
BPI has approved the loan on the basis of the project’s strong financial viability amid the rapidly growing office space sector and its confidence in the combined strength of the two groups. We are privileged to partner with Mitsubishi Corp., 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 premier financial district, CPG Chairman and President Jose E.B. Antonio said in a statement.
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, the United States, and the countries in Southeast Asia region. Among all countries, Mitsubishi believes the Philippines has the promising market due to its continuous high economic growth, Mitsubishi senior vice president Nobuya Ichiki said.
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 sq m.
As the world’s first Forbes-branded commercial building, it is the last parcel of land to be developed within Century City, the 3.4-hectare integrated mixed-use complex that used to be the former site of International School.
Forbes Media Tower is one of the three Class A commercial buildings that Century expects to add to its portfolio by 2019.