8990 sees sharp rise in sales in next 10 yrs
Mass housing developer 8990 Holdings expects to bring in P165 billion in potential sales from various housing projects within the next seven to 10 years, riding on the country’s favorable demographics and postpandemic economic rebound prospects.
This suggests that for each year, 8990 Holdings expects to generate at least P16.5 billion to P23.6 billion in sales, cashing in about 78,352 housing units in its development pipeline within the next seven to 10 years.
This year, the company expects to be on track to reach P20 billion in sales revenue, up from P14.2 billion last year.
In a disclosure to the Philippine Stock Exchange on Thursday, 8990 Holdings president and CEO Anthony Vincent Sotto said the estimated sales were based on the scale of the company’s land inventory, appraised at P41.2 billion.
The pipeline in Luzon is valued at P30 billion while that in Visayas amounts to P9.8 billion. The landbank in Mindanao is valued at P1.3 billion.
“While we continue to acquire land, it’s very encouraging to know that with just our current landbank, we can expect to see sustainable growth for 8990 as we project an estimated P165 billion in sales. Luzon is expected to bring the most with P93 billion followed by Visayas with P67 billion and Mindanao with P5 billion,” said Sotto.
Since its inception more than a decade ago, 8990 Holdings has delivered a total of 81,700 units from 65 projects. There are about 324,000 residents in its various projects, representing an occupancy rate of 89 percent.
Huge land inventory
8990’s ongoing projects will deliver a total of 52,240 units with an estimated sale of P95 billion once complete. Of the total, 51 percent will come from Luzon, 38 percent from Visayas and 10 percent from Mindanao.
Since 2016, about P17.7 billion worth of internally-funded housing loans had been taken out by the state-owned Home Development Mutual Fund or Pag-ibig Fund. Meanwhile, it had also unloaded P28.2 billion of mature housing receivables by selling these to financial institutions from 2016 to end-September 2021.
Last August, 8990 Holdings started its end-buyer financing programs. “Our accreditation with BPI Family Savings Bank and Security Bank has really been encouraging,” Sotto added.
While the lockdowns in 2020 affected the business, 8990 has seen a strong recovery this year. It reported a 63- percent year-on-year jump in nine-month net profit to P5.402 billion, while revenue surged by 57.6 percent year-on-year to P15.35 billion.
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