8990 Holdings sets capital spend for ‘22 at ₧10B-₧11B

MASS housing developer 8990 Holdings Inc. said it is spending between P10 billion to P11 billion in capital expenditures this year, mainly to fund the construction of its projects and purchase additional land.

This year’s capex is between 20 and 27 percent higher than last year’s capital spend at P8 billion.

As of June, the company has spent some P3 billion of its capex for construction and P1 billion for its land bank, or half of what it plans to spend for the year.

8990 president Anthony Vincent Sotto said at the company’s stockholders’ meeting that they expect to generate P12 billion in sales from two projects that it plans to launch starting the third quarter of the year.

The company plans to launch a 3,240-unit high-rise residential project along Commonwealth Avenue in Quezon City, offering two- and three-bedroom units with prices ranging from P2 million to P2.5 million per unit.

The company is also building 4,027 townhouse units on a 29-hectare property in Pampanga.

“Both of these projects will bring P6 billion each in revenues once completed,” Sotto said.

The company expects to post revenues of P23 billion this year, up 15 percent from the P20 billion reported a year ago amid a good business performance of projects.

“We have proven a business model that has enabled us to maintain consistently high performance and provide attractive returns to our shareholders in any environment,” he said.

Sotto said he is “positive” that the company will hit its P23 billion in revenues for the year despite rising interest rates as they were able send out their accounts receivables, or those accounts that pay their monthly amortizations, to PAG-IBIG Fund.

“And I think that helps because they offer the lowest interest rates as compared to other financing institutions, including our own in house financing. So that at least takes care of rising interest, which our buyers will definitely appreciate,” he said.

“But historically, our buyers have never really been so sensitive about interest rate hikes for so long as we are able to actually approximate rental rates with our monthly amortization because is it’s the same if they actually do not buy a house or do not continue purchasing the house, they still pay for rent,” he said.