Low-cost residential developer 8990 Holdings Inc. has expanded its landbank in the metropolis by clinching a deal to acquire a 13-hectare property in Pasig City for P2.2 billion.
The big property acquisition by 8990 Holdings, which backdoor-listed on the local stock exchange through IP Converge Data Center and now trades under the ticker HOUSE—is part of the reason for its plan to conduct a follow-on offering.
In a disclosure to the Philippine Stock Exchange Friday, the property developer said its subsidiary, 8990 Housing Development Corp., had entered into a deal with sellers Consolidated Tobacco Industries of the Philippines Inc. and Center Industrial and Investment Inc. on the acquisition of certain parcels of land— including improvements thereon—with a total land area of 130,390 square meters in Ortigas Avenue Extension, Barangay Rosario in Pasig City.
There are existing commercial establishments in the property like warehouses, banks and restaurants, the disclosure said.
8990 Holdings, for its part, has yet to specify plans for the new acquisition. “This will be determined in the future by the management of the company. In the meantime, the property will form part of the land bank of the company for future development projects,” the disclosure said.
The property is near the Filinvest group’s Oasis medium-rise residential complex, 8990 Holdings president Jesus Atencio III said.
8990 Holdings earlier obtained approval from the Securities and Exchange Commission to sell as much as P13 billion worth of shares through a follow-on offering. The housing firm plans to offer as much as 1.03 billion common shares at a maximum price of P12.70 each.
The offering will consist of 517.31 million primary common shares, out of which P6.35 billion in net proceeds are expected for the company’s expansion. Existing shareholders will also sell as much as 517.31 million shares, including 134.95 million shares set aside for overallotment option.
The selling shareholders are Luis Yu Jr. (199.29 million shares), Mariano Martinez Jr. (172.91 million shares) and Jesus Atencio III (10.16 million shares). Yu is a director and Martinez is the company chair.
Once the 1.034 billion primary and secondary shares are sold, about 20 percent of the company’s shares will be held by the public after the offering.