Waltermart Group of Companies, a 50:50 partnership between the Lim family and SM Retail Inc. of retail tycoon Henry Sy, has backed out from a joint venture partnership with mass housing developer 8990 Holdings on a planned mall development in Ortigas and Tondo.
“Waltermart has rescinded its partnership with 8990 to be the mall operator in the malls to be built in 8990’s project located at Vitas, Tondo and at Ortigas Avenue Extension,” 8990 Holdings chief executive Januario Jesus Atencio said in an interview.
“While we regret the turn of events, this presents an opportunity for us at 8990 to operate the mall ourselves, leading to a strong potential for enlarging our recurring income base,” Atencio added.
8990 Holdings in April last year selected Waltermart Group of Companies to be the mall operator for its two mixed-use developments in Metro Manila.
Atencio said the company was considering a new partner.
Other mall developers that have previously expressed interest in partnering with 8990 Holdings for mall development were DoubleDragon Properties Inc. and Metro Retail Stores Group Inc. of the Gaisano group.
8990 Holdings is developing a mall with 45,000 square meters of gross floor area within its 13-hectare development in Ortigas Avenue Extension and another shopping mall with 35,000 square meters of in its 8.5-hectare residential development in Vitas, Tondo.
The property firm’s plan to venture into mall development is aimed to provide the company with stable recurring income that would complement its residential sales.
8990 Holdings on Tuesday reported net income in 2015 increased 23 percent to P4.05 billion, exceeding the full-year target of P4 billion.
Gross sales rose 24 percent to P9.65 billion from P7.79 billion amid strong sales and increased construction capacity.
The company in 2015 acquired close to 500 hectares of land with an expected yield of a little over 100,000 housing units worth P109 billion. The company purchased lands in Davao, Iloilo, Bacolod as well as in Las Piñas and Cubao last year
The property firm expects net income in 2016 to increase 20 percent to P4.8 billion and revenues to rise 24 percent to P12 billion.
It also plans to launch 14 new projects this year, which would add 75,608 units worth P7.3 billion to its inventory.