8990 Holdings hits P1B loan loan takeouts with Pag-IBIG

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Mass housing developer 8990 Holdings Inc. recorded more than P1 billion in loan takeouts with state-run Home Development Mutual Fund (Pag-IBIG Fund) in the first half of this year, making the company Pag-IBIG’s top developer nationwide.

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In a statement, 8990 Holdings said that in December last year, 4,968 accounts, equivalent to about P4 billion worth of contracts to sell (CTS) from its various low-cost housing projects located in Angeles, Lipa, Cebu, Iloilo and Davao Cities, were migrated to Pag-IBIG for take-out under the Fund’s existing housing loan program.

This represents 35 percent of its P11.5-billion CTS portfolio. As of June 30, Pag-IBIG took out 1,335 accounts amounting to P1.126 billion.

Pag-IBIG has allocated P50 billion for individual housing loans this year.

“The P1-billion takeout of our CTS receivables through Pag-IBIG clearly shows that our business model works, and we hope that this allays whatever concerns the market has over our ability to effectively manage our receivables portfolio,” 8990 Holdings president and chief executive officer Januario Jesus Atencio said in the statement.

Based on Pag-IBIG’s recent list of top developers nationwide, the top three developers are now 8990 (P1.126 billion), New Apec Development Corp. (P669 million), and Homemark Inc. (P569 Million).

The mass housing firm launched its CTS-Gold in-house financing facility program patterned after Pag-IBIG’s guidelines after the latter tightened its lending rules in 2011 in the wake of the Globe Asiatique scandal.

“We patterned our in-house financing program as close as possible to the Fund’s guidelines because we wanted the eventual migration of our buyers to Pag-IBIG as seamless as possible,” 8990 Holdings said.

The firm’s CTS-Gold program, which has P11.5 billion in its portfolio, requires a 2 percent down payment; low interest rates starting at 8.5 percent per year; terms of up to 25 years to pay; and a monthly amortization cap of 40 percent of net disposable income.

“Our CTS-Gold program becomes complete when we are able to migrate our buyers permanently to financial institutions such as Pag-IBIG Fund,” Atencio said.

“We continue to explore new avenues of housing finance, such as takeout arrangements with banks, like our agreement with CBTC Bank for a P1.0 billion facility on a ‘non-recourse’ basis,” Atencio said.

“We are also looking forward to our first ever private sector securitization this August of P1.0 billion of our CTS as another milestone in our commitment to create more innovative opportunities for sustainable housing finance,” he added.

The mass housing developer’s net income grew 30 percent to P933.6 million in the first quarter from P716.7 million recorded in the same period last year.

For the next five years, 8990 Holdings is set to complete 18 projects consisting of 64,405 housing units on 250 hectares of land. Over the next five years, the firm expects to generate a total of P66 billion in revenues.

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