By James A. Loyola
Top mass housing developer 8990 Holdings Inc. is allotting P10 billion for capital expenditures next year as it continues to launch new projects while pursuing its new hotel venture.
8990 logo (Courtesy of 8990holdings.com)
In an interview, 8990 President Willie J. Uy said the bulk of the capex will continue to be used for the construction of housing units while about P1 billion will be allotted for the construction of new hotels.
Uy said projects to be launched next year will be housing developments in Davao, Cebu, Meycauayan in Bulacan and a big project in Iloilo which is slated for the first quarter of 2019.
Uy said new launches will boost their total selling inventory to P50 billion worth of house and lot and condominium units adding that their projects typically cost P1.7 million to P2 million.
However, Uy said they may implement a price increase next year with management recommending at least a 10 percent price hike although the firm’s board of directors has yet to approve this.
For 8990’s foray into the tourism business,8990 Leisure and Resorts,Uy said they will prioritize the construction of a new hotel in Siquijor.
The firm is targeting to spend up to P5 billion over the next five years with the aim of developing a total of 3,000 rooms over the next 5 years.
It is eyeing to open in the following key destinations: Cebu, Makati, Davao, Palawan, Boracay, Siquijor, Alabang, Manila, Iloilo, Legazpi, Clark, Lapu-Lapu, Siargao, and Baguio.
Uy said 8990 expects 2018 to be a banner year with revenues expected to hit P11.5 billion. He said net income usually amounts to about 40 percent of revenues or about P4.6 billion.
The firm generated a record high net income of P3.4 billion in the first nine months, a 38 percent jump from the same period in 2017.
Uy said the double-digit net income growth of the Company was the result of strong buyer demand for its nationwide housing developments.
Total revenues were up by more than 41 percent to P8.6 billion. More importantly, operating profits grew by 45 percent to P4.7 billion.
He noted that 8990 currently holds 540 hectares in its landbank, which is currently estimated to generate some P154 billion in sales in the next decade.
This year, 8990 has disbursed nearly P6 billion for its residential developments and for acquisition of raw land.