MANILA, Philippines - Low-cost residential developer 8990 Holdings Inc. has acquired several parcels of land in Pasig City for P2.2 billion.
In a disclosure to the Philippine Stock Exchange, the company said its unit 8990 Housing Development Corp. forged a deal with Consolidated Tobacco Industries of the Philippines Inc. and Center Industrial and Investment Inc. for the acquisition of 130,390 square meters of land along Ortigas Ave. Extension in Barangay Rosario.
The move is in line with the group’s strategy of stocking up on inventory for future land development.
The parent company recently obtained the Securities and Exchange Commission’s approval to sell up to P13 billion worth of shares through a follow-on offering.
The offering involves 517.31 million primary common shares, representing 20 percent of the company’s outstanding capital stock, to be sold at P12.70 apiece.
SB Capital Investment Corp. is the issue manager and lead underwriter for the offering.
Of the total proceeds from the share sale, about P2.5 billion will go to landbanking and another P2.5 billion for working capital requirements.
With over 22 years of experience in the real estate business, 8990 HDC has completed more than 51 residential subdivisions and successfully turned over more than 41,000 housing units located in Cebu, Davao, Angeles, Lipa, Cavite, and Naga.
The 8890 Group is also engaged in sports or tourism-related development. It currently operates two watersports facilities for residents of its housing projects in Angeles and Davao.
It also offers time share vacation deals at its 3,000 unit-Azalea Residences in Baguio for an investment of between P250,000 and P500,000 each share. A time share gives each owner the right to occupy a unit of real estate property such as a condominium or vacation home during a specified number of days.