8990 Holdings allots P3-B capex for 2018

MANILA, Philippines — 8990 Holdings Inc., the listed mass housing developer, is setting aside P3 billion for capital expenditures next year to fund its pipeline of projects.

In a briefing yesterday, 8990 president and CEO Willie Uy said the 2018 capex is higher than the P2 billion allotted this year.

Funding for the P3 billion will come from its receivables as the company continues with its liquidation activities.

The company is launching at least five projects next year. These include residential projects in Iloilo, Cebu and Davao. The actual number could go higher if the company would be able to get permits for more projects.

Completing the pipeline is a condominium project along Ortigas Avenue Extension, which will be the company’s biggest for 2018.

“The biggest one is Ortigas extension. That’s the biggest project lined up for 2018,” Uy told reporters.

The Ortigas Avenue Extension project involves the development of 33,000 condominium units in 12-storey buildings. It would have a full-sized community mall called Deca Mall.

Uy said the company hopes to start selling the Ortigas project within the first quarter of 2018 or as soon as it gets its license to sell from the Housing and Land Use Regulatory Board (HLURB).

Optimistic about its growth prospects, 8990 will continue to work on securing the necessary permits to be able to launch more projects in the next few years.

Uy noted that regulators have become more stringent with the permitting process.

Last week, 8990 successfully raised P5 billion from the sale of preferred shares, proceeds of which would be used to refinance existing obligations.

8990 is the leading mass housing developer based on HLURB’s total number of units produced from 2011 to 2013.