Listed mass housing developer 8990 Holdings Inc. expects its newly opened township in General Santos City in Mindanao to generate revenues of up to P1.1 billion.
In a briefing on Tuesday, 8990 Holdings president Januario Jesus Atencio said the Deca Homes GenSan Bayview is the first development they opened as a listed company since their follow-on offering last May.
“GenSan is also a location where we don’t have a presence. With this, we are expanding to other areas [to]establish new frontiers and branches where we can establish the Deca homes brand,” Atencio said.
“We’re only in six areas. This is in line with the company’s vision on providing solid and affordable housing in a lot of areas,” he added.
Deca Homes GenSan Bayview will cover 18.82 hectares of the developer’s 67.53-hectare land bank in General Santos.
Asked about the company’s plans for the remaining land area, Atencio said: “There’s room for expansion. Depending on the reception of the market, we can do more phases to this development. We’re taking it one step at a time.”
The project will comprise of 1,271 house-and-lot units ranging in size from 80 to 150 square meters, with amenities such as parks, playgrounds, church, sports area and other facilities. Total cost for the project is P400 million.
Atencio said the P400 million spending for the GenSan development will come from the firm’s P8 billion programmed capital expenditures (budget) for 2015, of which P3 billion will be used for land acquisition and P5 billion for operational spending such as direct costs, land development, and house construction, among others.
Last year’s capex stood at P7 billion — P3 billion for land acquisition and less than P4 billion for operational expenses.
The 8990 Holdings chief said the firm plans to grow its net income, revenue, and number of housing units annually by 20 percent.
“We want to double the company’s size every four to five years,” Atencio said.
“We’re bullish about prospects in the housing sector in the next few years. Mass housing will be another cornerstone of economic growth, connecting to the boost in the infrastructure sector,” he added.
He also said the property firm is “on track” to hit its 2014 full year earnings targets — net income up by 40 percent to P3 billion-3.2 billion from P2.2 billion last year, and revenues up by 60 percent to P7.8 billion from P5.4 billion in 2013.
In the first nine months of 2014, 8990 Holdings’ net income went up by 35 percent to P2.83 billion from P2.1 billion a year earlier as revenues jumped 45.8 percent to P6.33 billion from P4.37 billion.
8990 Holdings is expecting to double its land bank to 500 hectares this year — worth an estimated P25 billion of residential projects — and open new projects in new locations such as Bulacan, Bacolod, and Zamboanga.
As of end-September last year, the firm’s land back totaled 338 hectares of the 500 hectares targeted.
Formerly an IT and telecommunications firm, 8990 Holdings is engaged in building low-cost and affordable housing units but is now diversifying into the medium and high-rise residential segment through partnerships with industry players.