8990 sets P8-B capex, expects revenue milestone
Published Jul 31, 2023 10:31 am
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Updated Jul 31, 2023 10:31 am
Housing developer 8990 Holdings Inc. has allotted P8 billion for capital expenditures this year, same as what it spent in 2022, mainly for the continuing development of its various vertical and horizontal projects.
In a press briefing after the firm’s annual stockholders’ meeting, 8990 President and CEO Anthony Vincent Sotto said the company is launching four major projects this year including Deca Homes in Batangas, which would be an eight storey condominium project.
8990 Holdings Inc. President and CEO Anthony Vincent Sotto
Other projects to be launched later this year is Deca Homes Guadalupe in Cebu City, a mix of economic and socialized housing units; Rice at Monterrazas, also in Cebu, a high-end condominium project; and the second phase of Monterrazas Prime. Sotto said the company also has a development in Bacolod called Deca Homes Grenada, a 50-hectare socialized housing project. In the coming years, 8990 can expect to generate more revenues from Urban Deca Homes Banilad in Mandaue City, Cebu and the new Deca Homes Pampanga phase 1 project as turnover schedules are met. According to 8990 Chief Finance Officer Roan Buenaventura-Torregoza, the capex budget will be funded mainly by PAG-IBIG take-outs from its home buyers. “We've been always with Pag-IBIG. As of June of this year, we managed to migrate P6 billion of PAG-IBIG takeouts, and another P300 million with the banks. We can sustain the funding through take outs on our capex,” she noted. In previous years, the firm has sourced funds from the securitization of its receivables from home-buyers but they no longer have enough receivables to give to the banks. Torregoza said the receivables available for securitization with the banks is now down to P1.9 billion from the P5 billion during the pre-pandemic years. Meanwhile, Sotto said that, “on top of our current land bank, we are also in the process of unlocking the value of several properties nationwide through our 16 ongoing projects.” As of the end of the first quarter, 8990’s land holdings stood at 709.35 hectares with the addition of properties acquired in Cebu and Leyte. “We estimate our future projects will contribute approximately P155 billion in potential revenues in the next 7 to 8 years,” he said. The firm’s Luzon land bank alone is expected to generate P98 billion in revenues, while Visayas and Mindanao are expected to contribute P67 billion and P6 billion, respectively. Sotto remains confident that, with 2023 being a “good year” thus far, 8990 will hit yet another revenue milestone at the end of the year. “With strong financials, a robust portfolio, and a talented team, we are prepared to seize the opportunities that await us in 2023 and beyond,” he said.
8990 Holdings Inc. President and CEO Anthony Vincent Sotto
Other projects to be launched later this year is Deca Homes Guadalupe in Cebu City, a mix of economic and socialized housing units; Rice at Monterrazas, also in Cebu, a high-end condominium project; and the second phase of Monterrazas Prime. Sotto said the company also has a development in Bacolod called Deca Homes Grenada, a 50-hectare socialized housing project. In the coming years, 8990 can expect to generate more revenues from Urban Deca Homes Banilad in Mandaue City, Cebu and the new Deca Homes Pampanga phase 1 project as turnover schedules are met. According to 8990 Chief Finance Officer Roan Buenaventura-Torregoza, the capex budget will be funded mainly by PAG-IBIG take-outs from its home buyers. “We've been always with Pag-IBIG. As of June of this year, we managed to migrate P6 billion of PAG-IBIG takeouts, and another P300 million with the banks. We can sustain the funding through take outs on our capex,” she noted. In previous years, the firm has sourced funds from the securitization of its receivables from home-buyers but they no longer have enough receivables to give to the banks. Torregoza said the receivables available for securitization with the banks is now down to P1.9 billion from the P5 billion during the pre-pandemic years. Meanwhile, Sotto said that, “on top of our current land bank, we are also in the process of unlocking the value of several properties nationwide through our 16 ongoing projects.” As of the end of the first quarter, 8990’s land holdings stood at 709.35 hectares with the addition of properties acquired in Cebu and Leyte. “We estimate our future projects will contribute approximately P155 billion in potential revenues in the next 7 to 8 years,” he said. The firm’s Luzon land bank alone is expected to generate P98 billion in revenues, while Visayas and Mindanao are expected to contribute P67 billion and P6 billion, respectively. Sotto remains confident that, with 2023 being a “good year” thus far, 8990 will hit yet another revenue milestone at the end of the year. “With strong financials, a robust portfolio, and a talented team, we are prepared to seize the opportunities that await us in 2023 and beyond,” he said.