Mass housing builder 8990 Holdings Inc. said it sold P2.8 billion worth of receivables to Dearborn Resources and Holdings Inc.
8990 Holdings said in a disclosure to the stock exchange it signed an agreement with DRHI to sell and transfer in-house contracts to sell, or CTS, receivables worth P2 billion on a non-recourse basis.
The CTS comes from housing units involving 24 projects across the country.
The total value of 8990 Holdings’ CTS portfolio as of end-September 2017 stood at P19.7 billion comprising of over 22,000 housing units.
The group’s CTS portfolio has been going down as result of successful liquidation activities, such as migration of some accounts to National Home Mortgage Finance Corp. and sale to banks on a without recourse basis.
The mass housing developer in the third quarter of 2017 sold P1.2 billion of its CTS portfolio to BDO Unibank Inc. and Security Bank Corp.
CTS, the in-housing financing program being offered by 8990 Holdings to home buyers, is another major source of revenues for the company, contributing about 12 percent to core business revenue in terms of interest income.
8990 Holdings in the third quarter of 2017 generated P1.1 billion in interest income from CTS.
8990 Holdings earlier announced plans to launch five new projects with total sales value of P60 billion. The new projects are located in Davao, Iloilo, Cebu and Ortigas Extension.
To avoid possible delays, the company is now securing housing permits that will enable it to timely launch the projects.
The launching of some of the company’s projects in late 2016 and up to the first half to 2017 were postponed because of the delay in obtaining permits from various local government units.
8990 Holdings currently has a land bank of 565.9 hectares with an expected yield of almost 109,000 units worth P126 billion.
Share price of 8990 Holdings on Tuesday fell 0.8 percent to P6.30.