Housing developer unloading P2.8B in receivables

Housing developer 8990 Holdings has signed a deal to unload P2.8 billion worth of housing receivables, freeing up liquidity to build more houses for the mass market.

In a disclosure to the Philippine Stock Exchange, 8990 Holdings said its subsidiaries had entered into a deal to sell contract-to-sell (CTS) receivables to Dearborn Resources and Holdings Inc.

The company encourages buyers to get long-term financing from PagIBIG and banks but some enter into CTS financing with 8990 Holdings. As the housing developer’s primary business is to build and sell houses and not to finance consumers’ purchase of houses, the strategy is to sell some of the receivables to other financing institutions.

The purchase of receivables by big financing institutions is seen to indicate confidence on the quality of 8990 Holdings’ buyers as well as its credit evaluation procedures and credit and collection platform.

Based on the disclosure, the following 8990 Holdings units sold their CTS receivables: 8990 Davao Housing Development Corp. (P215.5 million); 8990 Housing Development Corp. (P1.8 billion); 8990 Luzon Housing Development Corp. (P559.96 million); 8990 Mindanao Housing Development Corp. (P5.45 million), and Fog Horn Inc. (P248.78 million). —DORIS DUMLAO-ABADILLA