Mass housing developer 8990 Holdings Inc. said Monday it will allocate P3 billion for 2018 capital expenditures mainly to finance the construction of high-rise residential projects and land banking activities.
8990 Holdings incoming president and chief executive Willibando Uy said in an interview the 2018 programmed capital spending would be higher than P2 billion the company budgeted for 2017.
He said the bulk of the P3 billion would be used to start the construction of the P14-billion mixed-use residential and commercial development along Ortigas Extension in Pasig City which would be launched next year.
The 13-hectare Urban Deca Homes Ortigas development will feature 24 residential buildings with a total of 18,993 units and a shopping mall. The project will be the company’s biggest development next year.
Uy said the company was now in the process of securing the necessary permits that would allow it to start selling the units.
He said funding for the 2018 capital spending would primarily come from receivables, planned securitization of up to P5-billion receivables and the issuance of the second tranche of preferred bonds.
Uy said the company would remain aggressive with project launches, as demand for affordable housing would remain strong until 2030.
Uy said the demand was particularly strongfor housing units costing P2 million and below, the segment served by 8990.
“Even if the real estate industry goes full stream ahead, it will not meet the housing requirements of the country,” Uy said.
Uy, who is also the chairman of the Subdivision and Housing Development Authority, said the country’s housing backlog stood at 5.7 million units.
He said aside from the Ortigas Extension project, 8990 planned to launch four more projects with a total sales value of P60 billion.The four other projects are located in Davao, Iloilo and Cebu.
The property firm earlier reported a 29-percent increase in third-quarter revenues to P3.1 billion, boosting nine-month sales to P6.1 billion.
Third-quarter net income also rose 9 percent to P1.23 billion from P1.13 billion a year ago, lifting nine-month profit to P2.4 billion.
Share price of 8990 Holdings rose 1.4 percent Monday to P5.63.