8990 allocates P3 billion for capital expenditures

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8990 Holdings is planning to ramp up construction of projects in 2018. -- HTTP://8990HOLDINGS.COM/

By Arra B. Francia, Reporter

MASS HOUSING developer 8990 Holdings, Inc. will allocate P3 billion in capital expenditures next year to support the construction of its projects as well as the acquisition of land properties.

“We’re looking at P3 billion (for the whole 2018),” 8990 Chief Operating Officer Willibaldo J. Uy told reporters in Makati City on Monday.

This is 50% higher than the P2 billion the company has allocated for projects in 2017.

8990 Chief Financial Officer Roan Buenaventura-Torregoza said the funds will primarily be used for the construction of projects and land acquisitions.

“Mostly for the construction of high-rise. Pero on landbanking, we’ve just replenished yung land bank namin. Because our land bank strategy is 500 hectares at any given point in time. So replenishment,” Ms. Torregoza said. 

At the same time, 8990 will be launching five projects worth P60 billion in sales. These will be spread out in Cebu, Iloilo, Ortigas, and Davao with two projects lined up. 

The company added that more projects may be launched next year depending on the processing of permits from regulators.

“It’s more driven by how fast the permits can come out. Because now it’s quite long, although it’s more predictable now, it’s hard to say,” Mr. Uy said.

Mr. Uy noted they will start selling units at its Ortigas project by the first quarter of 2018, as soon as the company secures the license to sell from the Housing and Land Use Regulatory Board (HLURB). So far, the company has signed a contract to construct six buildings within the area. 

“We can start selling already. Very strict lang talaga sila sa HLURB we just want to make sure that we have everything in place before we start accepting reservations,” Mr. Uy said. 

The 8990 executive said the project will be similar in size to its Tondo development, where the company is currently constructing 13 residential buildings offering 13,212 condominium units and 2,226 parking lots.

The Ortigas project will also have a mall, which will begin construction in late 2018, as the company looks to take advantage of the market once residents start moving in the condominium. 

“Because of the size of the community there. Kasi captive market, sayang naman. Rather than them going out, they’d just stay inside the mall,” Mr. Uy said. 

Mr. Uy added they see potential mall developments complementing their housing projects.

“This is something we can’t wait to get into. As long as it can serve our market that’s big enough,” he said, adding the project may be replicated in other vertical developments with more than 10 buildings.

In this setup, 8990 will be leasing out the land to its sister company called Yuma, which will then handle the retail component.

8990 booked a 22% decline in attributable profit for the first nine months of 2017 to P2.47 billion, weighed down by delays in processing of permits.

Shares in 8990 added eight centavos or 1.44% to close at P5.63 apiece at the stock exchange on Monday.

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