MANILA, Philippines–Mass housing developer 8990 Holdings Inc. has invested P1.61 billion to acquire an 8.47-hectare landbank in Tondo, Manila, on which it intends to build a low-cost, mid-rise residential condominium community with an integrated retail hub.
In a statement on Wednesday, 8990 Holdings said the acquisition would increase its landbank in the metropolis and “further secure its position as the recognized leader in affordable housing nationwide.”
8990 Holdings, through subsidiary 8990 Housing Development Corp., agreed to acquire a property measuring 84,731.95 square meters in Vitas, Tondo, with a purchase value of P1.61 billion.
This was done through the acquisition of two companies that are the registered owners of the property, namely, Tondo Holdings Corp. and Euson Realty and Development Corp.
“The Vitas area in Tondo is probably the densest area in the Philippines in terms of number of people, small business trade and commerce,” Januariuo Jesus Atencio, president and chief executive of 8990 Holdings, said in the statement.
“It is our vision to transform this property into a mid-rise condominium community using our ‘integrated mall’ concept that will cater to the affordable market of housing composed of working-class families, call center employees and small- and medium-size business entrepreneurs,” Atencio added.
The new development in Tondo is estimated to provide 15,000 low-cost residential units. The Vitas property will also have an integrated mall as the major amenity that will provide shopping, institutional, service, recreational and educational establishments that will cater not only to the residents of the community but also to nearby communities around the area.
The project will be undertaken under the group’s brandname “Urban Deca Homes.” This will be the second project bearing 8990 Holdings’ integrated mall concept after the earlier 13-hectare property on Ortigas Avenue Extension in Pasig City.
The share purchase agreements and the deeds of sale of shares transferring ownership of the two companies and the Vitas property were signed yesterday.
In the first quarter, 8990 Holdings grew its net profit by 30 percent year on year to P933.6 million.
It was earlier reported that 8990 Holdings expected its gross revenues to breach the P8-billion mark this year, at least 40 percent of which would likely end as net profit. By recently embarking on the P9-billion follow-on equity offering, 8990 Holdings has gained the leeway to pare down debt and free up more funds for expansion and working capital. The projected revenues of P8 billion for this year suggests a growth of 49 percent from P5.36 billion last year.
The goal is to double the company’s landbank, currently at 250 hectares, to support future growth.