8990 Holdings invests in shopping mall sector
Mass housing developer 8990 Holdings plans to expand into the shopping mall development sector, starting with its multibillion mixed-use project on Ortigas Ave. Extension.
Following its P9-billion follow-on offering that led to the entry of two sovereign wealth funds as investors—Khazanah Nasional Berhad and TPG Global—8990 Holdings announced on Monday that it would begin building malls that would be integrated into its medium and high-rise residential projects.
As part of the leasing portfolio, shopping mall developments typically add stable cash flow to a property developer and compensate for the cyclical nature of the residential development segment.
This “integrated mall” concept will be undertaken by the group’s main subsidiary, 8990 Housing Development Corp., under its brand name “Urban DECA Homes.
The first of such integrated projects will be located in the group’s property on Ortigas Ave. Extension that was purchased only last February for P2.2 billion, the company said Monday in a press statement.
The integrated mall will be the main attraction of the 13-hectare development involving mixed-use, mid-rise, low-cost condominiums.
These will cater to the huge and growing working class looking for decent and affordable housing near their place of work and, at the same time, near shopping, institutional, service, recreational and educational establishments.
“We are very excited about this innovation,” said 8990 president Januario Jesus Atencio, noting that the integration of a mall would be “the new template for 8990’s vertical projects that will add significant value to our mass housing condo units.” But Atencio stressed that despite the innovations that would be put in place, the residential offerings of 8990 would still be within the price points that cater to the mass housing market.
