MANILA, Philippines - A subsidiary of low-cost residential developer 8990 Holdings Inc. has inked an agreement with CTBC Bank (Philippines) Corp. to sell P1 billion worth of housing receivables.
In a filing with the Philippine Stock Exchange, 8990 said the receivables, owned by 8990 Housing Development Corp., arose from the sale of its housing units in DECA Homes Mactan, DECA Homes Baywalk Talisay 1, DECA Homes Mactan 5, and Urban DECA Homes Tipolo.
The sale of receivables will be on a non-recourse basis and shall be based on the outstanding principal balance (OPB), 8990 said.
8990 gained entry to the stock exchange through a backdoor listing via IP Converge Data Center. It is a leading mass housing developer having sold over 26,000 units nationwide since 2003.
The group has about 13,000 additional units available for development and sale from ongoing projects.
Apart from the development of low-cost housing units, 8990 has branched out into other segments of the market such as shopping mall and high-rise residential development.
Awash with cash following a P9-billion follow-on offering that saw the entry of two global long-term institutional investors, the group is pursuing the construction of a mixed-use project on Ortigas Ave. Extension. An integrated mall will be the main attraction of the 13-hectare development.
The company’s first high-rise residential project, located on EDSA near the Victor R. Potenciano Medical Center, will bring to the market about 2,000 units priced at a maximum P1.2 million each.
In the first quarter this year, 8990 posted a net income of P933.6 million, up by 30 percent year on year. Sales expanded 22 percent to P1.92 billion, driven mainly by the launch of new projects which include DECA Homes Indangan in Davao City, as well as the increased sales in ongoing DECA Homes projects in Angeles, Cebu, Gen. Trias and Iloilo cities.
Given a steady stream of new projects, the housing developer sees gross revenues breaching P8 billion this year, 49 percent higher than the P5.36 billion recorded in 2013.
The company aims to double its landbank, currently at 250 hectares, to spur faster growth.