8990 Holdings Inc. is placing mall development high on its priority list as part of the strategy to boost foot traffic in its mixed-use communities in Ortigas and Tondo before developing the residential and office components in the two locations.
“Hopefully, after all permits are settled this year, then maybe we can start the malls,” President and Chief Executive Officer (COE) Januario Jesus Atencio told reporters last week.
The mass housing developer whose shares are traded on the Philippine Stock Exchange said the mall development will be executed in partnership with WalterMart under a 70-30 joint venture in favor of WalterMart which will handle mall operations.
WalterMart also operates 19 other community malls in Metro Manila and Luzon, and is 51-percent owned by Sy-led SM Prime Holdings Inc.
The 8990 CEO earlier said the Ortigas and Tondo projects to be completed in the next four years will cost P53 billion, while developments covering the office buildings will follow after the four-year window.
With WalterMart taking care of 8990’s mall developments, the mass housing developer has engaged the services of Megawide Construction Corp. to build building high density condominium towers.
8990 and Megawide already signed an agreement to build the first four condominium towers of 8990’s planned 13 buildings that boils down to 15,000 residential condominium units of housing inventory, Atencio said last week.
The mall and condominium projects are in line with the goal to grow 8990 this year, with nine launches in the pipeline in Muntinlupa, Cavite, Cebu, Iloilo and Davao equivalent to 4,486 units and valued at P4 billion.
Atencio said the company is “on track” in terms of 2015 versus 2014 profit guidance of P4 billion from P3.3 billion in net income and P10 billion from P7.8 billion in revenues.
Formerly an information technology and telecommunications company, 8990 Holdings is also diversifying into the medium- and high-rise residential development in partnership with industry players.