MASS housing developer 8990 Holdings Inc. is looking to spend P12.5 billion in capital and operating expenditures in 2017, a company official said.
In an interview last week, 8990 chief executive officer Januario Jesus Atencio told reporters that the company is looking at a capital expenditure (capex) of P5 billion and operating expenditure (opex) of P7.5 billion next year.
Atencio emphasized that for the company, the capex budget is the fund used mainly for its land banking activities while operating expenditure refers to spending for projects.
“Because when you say capex, you’re talking about land bank. For the projects, that’s opex,” Atencio said.
The developer plans to spend around P3 billion to P5 billion on its land banking initiatives for next year, he said, adding that this year, the company spent less than P2 billion on land banking as it could not find good properties.
For 2017, Atencio said he would like to explore areas in the North for land banking activities, particularly Dagupan in Pangasinan and La Union.
“More in the North, because in the South, it seems we’re actually good,” Atencio said.
“We’re already in three places in the Visayas. We’re already in two places in Mindanao. In Luzon, we’re only in, outside of NCR, Marilao,” Atencio added.
For its operating budget next year, Atencio said the company plans to allocate P7.5 billion, which is half of their gross sales target for 2017.
“If I’m targeting P15 billion, then my opex is P7.5 billion. Half of my gross sales,” Atencio said.
Atencio said opex refers to the money the firm needs to put up its buildings for sale.
For full year 2016, 8990 targets to reach P12 billion in revenues, in line with growing its revenues by 10 percent from last year’s P10.7 billion.
Atencio earlier expressed his optimism for reaching the goal.
“Yes, I think we can. If we can’t make it, we’ll not be too far behind,” Atencio said.