Developer to complete sale of P4B in securities
The company behind mass housing developer DECA Homes, 8990 Group, is set to complete the sale of P4 billion worth of asset-backed securities late this month or in early June to fund expansion and to sustain growth and profitability.
According to 8990 Group president and CEO Januario Jesus Atencio, 8990 Group recently finalized a backdoor listing on the Philippine Stock Exchange through IP Converge Data Center Inc., which will be renamed into 8990 Holdings.
Atencio said the funds would be used to clean up the company’s balance sheet as well as expand its portfolio.
The transaction, underwritten by MayBank ATR Kim Eng and SB Capital, will allow 8990 Group to sell securities backed by the builder’s receivables on contracts-to-sell on housing units.
Atencio said the securities would have a term of 10 to 25 years, depending on market demand.
The transaction is separate from a planned follow-on share sale by 8990 Group, through IP Converge, which may take place in July, he said.
Atencio did not give details such as the size of the offer.
A statement last week showed that 8990 Group hopes to grow its full-year profit by up to 40 percent from P1.7 billion in 2012.
The group is considered to be a major real estate player, having developed 51 subdivisions and turned over 41,000 housing units in Visayas and Mindanao.
Its main product is residential subdivisions under the DECA Homes brand, but it also develops medium-rise buildings under the Urban Homes brand.
The group has 10 ongoing residential projects in Angeles, Cavite, Iloilo, Cebu, and Davao. Miguel R. Camus
