Waltermart, 8990 cancel joint venture

MANILA, Philippines – Mass housing developer 8990 Holdings Inc. said its supposed partnership with Waltermart is no longer pushing through.

8990 Holdings president and CEO Januario Jesus Atencio said Tuesday night  Waltermart had rescinded their joint venture agreement, which was forged last April.

Atencio said 8990 is open to forging partnerships with other companies to further improve its profitability.

He did not cite a reason behind the rescindment of the agreement but industry sources said Waltermart deemed the partnership might not be competitive because of the SM branches in nearby areas.

Under the agreement, Waltermart was supposed to be 8990’s strategic partner for mall operations in several mixed-use projects, particularly those located along Ortigas Ave. Extension and Vitas, Tondo.

The 13-hectare Ortigas Ave. Extension property in Pasig is envisioned to become a mixed-use development, consisting of mid-rise, low-cost condominiums and a mall as a retail component.

Aside from the two locations, 8990 said it was also looking at two properties – Yakal street in Makati City and Filinvest City in Alabang – as potential sites for its  planned shopping malls.

The SM Group in 2013 bought into the Waltermart Group of Companies, resulting in a 50-50 partnership between the Sy and Lim family.

Prior to SM’s entry, Waltermart had already been in the retailing business through its shopping malls and supermarkets for over two decades.

It has put up branches in various towns in Batangas, Laguna, Cavite, Bulacan, Pampanga and Nueva Ecija. Some of these community malls feature cinemas and supermarkets.

The listed mass housing company reported a 23 percent growth in earnings last year to P4.05 billion, slightly exceeding its target.