Mass housing developer sees 40% profit increase

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Listed mass housing developer 8990 Holdings Inc. expects a 40-percent hike in its full-year net income this year on the back of strong housing sales.

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According to 8990 Holdings President Januario Jesus Gregorio Atencio 3rd, net income for 2014 is expected to grow by around 40 percent to between P3 billion and P3.2 billion from P2.2 billion last year.

The housing firm also targets to achieve 60-percent revenue growth to between P7.6 billion and P7.8 billion from the P5.4 billion recorded last year.

Meanwhile, the company is close to meeting its land bank target of 500 hectares worth P25 billion in residential projects. To date, 8990 Holdings already has 338 hectares of the targeted 500 hectares.

Earlier this month, 8990 Holdings partnered with contractor Megawide Construction Corp. to build high-rise condominium townships, one along Ortigas Avenue Extension (22 hectares) in Pasig City and another in Tondo, Manila (8.4 hectares).

Both projects are seen to be completed over the next four years and will have an expected gross value of about P53 billion at completion.

As of end-September, 8990 Holdings has invested P24 billion for its various projects—P2.2-billion for the purchase of a 13-hectare property in Pasig City and P1.6 billion for an 8.4-hectare piece of land in Vitas Tondo. It will also invest an additional P13.25 billion for the Pasig City condominium towers with Megawide and P6.83 billion for the project in Manila.

As of end-June, the company has acquired more than 85 hectares, raising its land bank to 338 hectares from 250 hectares as of end-2013. It aims to develop a total of 89,850 units housing units spread across the targeted land bank of 500 hectares.

Earlier, Atencio said the potential land bank acquisitions to complete the 500-hectare target include: 121 hectares in Davao, 38 hectares in Cebu, 35 hectares in Angeles, 140 hectares in Cavite, 93 hectares in Bulacan and 1.4 hectares along Alabang-Zapote Road in Las Piñas, Metro Manila.

The company is looking to build more housing units to ease the country’s 4-million housing backlog as of end-September.

The company has completed a total of 5,603 housing units in North and South Luzon, Cebu, Iloilo and Davao as of end-2013.

Over a five-year span, 8990 Holdings is set to complete 18 projects, expecting a total of P66 billion in revenues.

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.

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