8990 sets P4.3-B profit target
MASS HOUSING developer 8990 Holdings, Inc. is aiming to net around P4.31 billion in 2018, banking on the launch of its P35-billion mid-rise condominium project along Ortigas Extension.
The target net income is based on a 37.5% margin from 8990 Holdings’ projected revenue of P11.5 billion for the year. This is also 4% higher than the P4.13 billion it realized in 2017.
The 37.5% profit margin is lower than the 40% the property developer has observed in previous years.
“We’re looking at P11.5 billion gross revenues for 2018, hopefully we can do even better…, and 37% of that is net income because the competition is stronger in Metro Manila, and construction prices have been going up,” 8990 Holdings President and Chief Executive Officer Willibaldo J. Uy told reporters in a briefing in Makati last week.
Meanwhile, 8990 Holdings will be starting its largest project to- date in the second half of 2018.
“We’re looking at starting the Ortigas Extension (project) in the second half this year. We just got our permits for that two weeks ago, that one is expected to bring in the income, although it might not be rented out until the next two years. But that’s fine, as long as take-up is good,” Mr. Uy said.
The Ortigas Extension project will consist of 22 buildings with 13 to 15 floors each housing a total of 18,993 units. A shopping mall will stand in the middle of the condominium complex.
8990 Holdings has tapped Megawide Construction Corp. to construct the project. With three to four buildings to be completed in a span of 24 months, the company expects to finish the entire project within six to seven years from the start of construction.
The Ortigas Extension project is similar to 8990 Holdings’ Urban Deca Homes project in Tondo, which features 13 mid-rise buildings offering around 13,000 units. The project, with an estimated sales value of P21 billion, is currently under construction and has already started turning over units from the first buildings completed.
The Tondo project also has a P452-million community shopping mall with a gross leasable space of 13,000 to 14,000 square meters (sq.m.). 8990 Holdings has recently topped off the mall, with soft opening slated for the first quarter of 2019.
8990 Holdings booked a net income of P1 billion in the January to March period of 2018, its first time to hit a billion pesos for a single quarter. This came on the back of a 57% jump in revenues to P2.5 billion due to increased contributions from its projects nationwide.