8990 Holdings breaks ground for Tondo mall

MASS HOUSING developer 8990 Holdings, Inc. on Wednesday broke ground for its first mall in Tondo, Manila, where it is developing an 8.4-hectare residential complex.

The listed firm has allotted P452 million for the development of the two- storey Deca Mall Tondo, slated to be operational by 2018. The mall will have a food court and 95 tenant stores, as well as 130 slots for small- and- medium enterprises at the tiangge at the second floor.

“Now that we’ve broken ground, it would be easier for us now to generate interest for the tenants. Basically there are two anchor tenants, one will be the department store and the other the supermarket,” 8990 Holdings President and Chief Executive Officer Januario Jesus Gregorio B. Atencio III told reporters after the groundbreaking ceremony in Manila.

Mr. Atencio said the mall is looking for tenants that will cater to residents in the area, noting Tondo is one of the densest areas in the country but does not have a shopping mall.

“We’re looking for a department store/supermarket that fits the demographic of the area... If you notice in this place, there’s no mall, mass market that can deliver value for money for retail and consumer items,” he added.

The mall is located inside Urban Deca Homes Tondo Manila, a low-cost condominium project that will offer 13 residential towers with an estimated 13,212 units.

By the time the mall opens, 8990 Holdings will be turning over some units in the first three towers of the development.

“The thing is there’s weather conditions, so we have to deal with that. But the idea is to already start delivering one to three buildings... They’re almost done. It’s the finishing works to either make the delivery of the units happen this year or a little bit delayed to next year,” Mr. Atencio said.

Asked about the take-up of units, Mr. Atencio said the market reception is fair, but they are “still not satisfied.”

“We’re finding out, and early enough, that a lot of our prospective buyers in Tondo who actually are already renting nearby, do not like to avail of Pag- IBIG fund loans. And that is, therefore, they’d much rather like in-house finance. So we’ve brought it back. And judging from the response, I think we can double the sales of this project,” Mr. Atencio said.

An in-house financing program allows customers to pay a minimal downpayment and then move into their homes.

Prices of units at Urban Deca Homes Tondo Manila range from P1.37 million to P1.45 million for 23-square meter (sq.m.) studios, to P1.7 million for two-bedroom units with a size of 32 sq.m.

With this, amortization rates can go for as low as P9,000 every month for studio units, and up to P11,000 monthly for twobedroom units.

Earnings of 8990 Holdings dropped by 29% in the first quarter of 2017 to P736 million, due to project delays specifically in Davao, as well as the lack of skilled labor needed to complete high-rise buildings in Manila and mid-rise developments in Cebu.

Despite the decline, the company continues to target 10-15% growth for full-year 2017, as it anticipates a turnaround in the second half.

Shares in 8990 Holdings were unchanged at P5.89 each on Wednesday.