8990 Holdings eyes P165B from home sales
8990 Holdings Inc. is eyeing to raise P165 billion from selling 78,352 housing units in the next seven to 10 years, which will be supported by its expansive land bank.
The property developer told the exchange on Thursday that it currently has 670.91 hectares in its land bank, which is currently appraised at P41.2 billion.
“While we continue to acquire land bank, it’s very encouraging to know that with just our current land bank, we can expect to see sustainable growth for 8990 as we project an estimated P165 billion in sales,” 8990 Holdings President and Chief Executive Officer Anthony Vincent S. Sotto said.
Its properties in Luzon are currently valued at P30 billion, Visayas at P9.8 billion, and its land in Mindanao is worth P1.3 billion.
For January to September, 8990’s projects are expected to deliver 52,240 units collectively worth P95 billion in sales. Majority or 51% of the projects are in Luzon, 38% in Visayas, and 10% will be from Mindanao-based projects.
8990 Holdings said it expects to hit P20 billion by the end of the year. The company said it has an unrealized sale of P2.75 billion from 1,680 units, most of which will be recognized by the fourth quarter.
“Our outstanding results, both for the third quarter of 2021 and for the first nine months of the year, definitely show an increase in confidence for the future from our core market of first-time homebuyers and end users,” Mr. Sotto said, describing 89% of the housing units as primary homes.
Half of the company’s homebuyers are said to be 35 years old and below, with 64% of them earning P55,000 monthly.
The company said it is able to provide accessible housing to “challenged demographic groups.” Its homebuyers also include undergraduate females, those who live outside of Metro Manila, and overseas Filipino workers.
“This is made possible by our partnerships with institutions that make financing easier for our buyers,” Mr. Sotto said.
The company has added P17.7 billion to the Home Development Mutual Fund. Meanwhile, its sale of receivables without recourse sold to financial institutions covering 2016 to September this year reached P228.2 billion.
As of August, the company also said it started its “end-buyer financing programs.”
The company has so far delivered 81,700 units from 65 projects after over 10 years. It has an occupancy rate of 89% with 324,000 residents.
On Thursday, 8990 shares at the stock exchange climbed 2.06% or 22 centavos to close at P10.90 each. — Keren Concepcion G. Valmonte
