Mass housing developer 8990 Holdings Inc. plans to launch over P50 billion worth of residential projects in 2019 as demand remains strong amid the rising interest rate environment.
8990 Holdings president and chief executive Willibaldo Uy said the company was poised to unveil next year its biggest residential project to date that will offer 19,000 units in a 13-hectare development along Ortigas Extension.
The whole development which will take five years to complete will offer 22 residential towers and generate P38 billion in sales value at an initial selling price of P2 million per unit.
Uy said the company was also poised to launch other residential projects in Davao, Cebu, Bulacan, and Bacolod.
Uy said the company would spend P10 billion in capital expenditures next year, of which P9 billion will be allotted for residential projects and P1 billion for a planned hotel venture.
The mass housing developer early this month said it would venture into hotel and resort development. The group is looking at Cebu, Makati, Davao, Palawan, Boracay, Siquijor, Alabang, Manila, Iloilo, Legazpi, Clark, Lapu-Lapu, Siargao and Baguio for its foray into the leisure and hospitality industry.
The company has earmarked P5 billion to build a hotel portfolio with 3,000 room keys over the next five years.
Meanwhile, Uy said 2018 would be a banner year for 8990 Holdings. The company is set to reach its full-year target of P11.5 billion in revenues and P4.3 billion in net income.
The company booked net income of P3.4 billion and revenues of P8.63 billion in the first nine months of 2018.
The company as of end-September had nearly 540 hectares in land bank with potential sales of P154 billion.
Uy said the company was initially looking at a 10-percent growth in revenues next year amid measures to temper rising costs.
Uy said the group would implement belt-tightening measures to hit its target margins without affecting demand.