8990 plans malls for SMEs
After the termination of its shopping mall partnership with the SM group, mass housing developer 8990 Holdings will proceed with plans to develop a shopping mall portfolio on its own as part of its township projects in two locations, Tondo and Ortigas Avenue Extension.
The shopping mall complex in these two township projects are being conceptualized to be a haven for small and medium enterprises (SMEs), 8990 Holdings president and chief executive officer Januario Jesus Gregorio Atencio III said.
Atencio said this would be a way of helping nurture SME vendors by giving them a break through access to affordable commercial space to lease.
“We can actually also offer training to SMEs on how to grow their business and put in the proper accounting controls,” he said.
For the most promising SMEs, Atencio said Original Pitch—a new venture capital fund he had set up with a group of friends (outside of 8990 Holdings)—may even come in as equity partner or financier.
“We’re just finalizing the plan. This is our first mall so we want it to be very good,” he said.
The target is for the two township projects to break ground in 2017.
“We’re still finding out what kind of vehicle is the best way to handle the mall business, but right now it’s folded in [8990 Holdings]. The malls will now provide commercial-based recurring income to 8990 Holdings,” he said.
It was earlier estimated that the Vitas property will have 35,000 square meters of gross floor area (GFA) devoted to retail while the Ortigas Avenue extension property will have 45,000 square meters of retailing GFA.
Combined gross leasable area in these two locations is estimated at around 30,000 square meters.
Earlier, the plan was to develop the retail areas in these two township projects through a joint venture deal with SM-Waltermart. However, the deal was rescinded.
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