8990 Holdings hikes spending budget

MANILA, Philippines - Mass housing builder 8990 Holdings Inc. is hiking its spending program this year to P8 billion as its confidence in the country’s affordable housing market remains on a high level.

In an interview, 8990 Holdings president and chief executive officer Januario Jesus Atencio said the company is budgeting a maximum of P3 billion for capital expenditures (capex) this year and another P5 billion for operating expenses (opex).

Atencio said this year’s spending is higher compared to last year’s less than P4-billion opex and P3-billion capex.

The capex budget is being allocated specifically for purchasing new land and increasing production capacity while the opex would be used for land development and construction of houses, he explained.

“We are still bullish about the prospects in the next few years. I think mass housing will become another cornerstone for economic growth,” Atencio said.

8990 Holdings is eyeing to double its landbank to 500 hectares and start new projects in Bulacan, Bacolod and Zamboanga this year.

The company announced yesterday its foray into the Gen. Santos housing market with the launch of its P1.1-billion Deca Homes GenSan Bayview project.

Atencio said the new mass housing project in Gen. Santos City is part of the company’s efforts to expand its presence in Mindanao.

The property was acquired from SAFI Land–GSC Development Corp. late last year.

“We are happy about opening our new branch in General Santos City because it allows us to expand our reach to new areas and extend our housing products and services to more working class Filipinos,” Atencio said.

Deca Homes GenSan Bayview, 8990 Holdings’ first mass housing project in the city, covers an 18.82-hectare portion of a 67.53-hectare property complex.

The housing project will consist of 1,271 house and lots ranging from 80 square meters to 150 sqm, with parks, playgrounds and other community facilities.

8990 Holdings said the company also intends to construct socialized housing units with a size of 40 sqm each.

Just last week, the company launched a P1-billion, 140-hectare township project in Iloilo called Deca Homes Pavia Resort Residences.

Atencio said 8990 Holdings is looking to complete more units this year than the 8,000 units it was able to turn over last year.

The company also expects to sustain its robust double-digit growth in net income and sales in the next few years with the projects it has invested into and are in the pipeline.

“I want to target in general at least a 20 percent growth every year. We want to double our size in every four to five years,” Atencio said.