8990 Holdings goes into mall development

MANILA, Philippines - Mass housing developer 8990 Holdings Inc. plans to make its foray in mall development this year as it nears a joint venture deal with a local mall operator.

8990 Holdings president and chief executive officer Januario Jesus Atencio said the company is now finalizing  paper works with its mall partner, making him confident that the construction of the malls would commence this year.

“We are now just waiting for the documentation for the signing of the partnership agreement. When that happens I can now finally disclose to the public who the mall partner is,” Atencio said.

8890 Holdings is looking to start its mall development venture in its 13-hectare Ortigas Avenue Extension property, a mixed-use development consisting of mid-rise, low cost condominiums and a mall as a retail component.

“The other mall will be in our eight-hectare property for development in Vitas, Tondo so that’s going to have a mall under the same mall operator, under the same terms and conditions,” Atencio said.

The property firm last year acquired the 84,731.95-square meter Vitas property for P1.61 billion.

“So with the malls, I’m finally going to have a commercial space to add to my recurring income from CTS (contract to sell) receivables,” he added.

Atencio earlier said the company’s initial plan is to have fully integrated malls that would have a school, clinic, and government institutions.

8990 Holdings is earmarking a spending budget of P8 billion this year, of which P3 billion will be used for capital expenditures and another P5 billion for operating expenses.