8990 eyes ₧10.4-B sales from Cubao condo project

Low-cost housing developer 8990 Holdings Inc. said it is launching its Urban Deca tower cubao project in Quezon city in the

second half of 2021.

The company is expecting to generate P10.4 billion in sales from this project. Located along EDSA southbound corner Mayor Ignacio Santos Diaz St. and a few steps away from the MRT3 Cubao station, the project targets end-users who want to buy their first home.

Urban Deca Tower Cubao will have 45 storeys and contains 4,961 studio units. The units are priced at an average of P1.9 million. The project will also host 2,859 square meters of commercial spaces.

The company already broke ground on Urban Deca Tower Cubao in February last year before the lockdowns started.

“This is definitely a positive sign that many Filipino families are still looking at a better future and this inspires us to continue building communities that offer quality living at highly affordable prices. The same holds true for our new Urban Deca Tower Cubao project,” company chairman Mariano Martinez Jr. said.

The company reported a 17-percent increase in its net income for the first quarter to P1.55 billion from the previous year’s P1.32 billion.

Revenues rose 29 percent to P4.47 billion from last year’s P3.46 billion.

Half of its revenues came from its low-cost mass housing business at P2.32 billion, more than double than last year’s P1.02 billion. Some P535.71 million came from its medium-rise condominium projects, flat from last year; P1.6 billion from high-rise projects, down 12 percent from last year’s P1.82 billion; and P16.78 million from developed subdivision lots from zero last year.

The company had no rental income and hotel operations this year compared with P81.25 million in combined revenues last year.

The company said its number of units sold rose 3 percent, which it said is an indication that Filipino families remain driven to pursue their dream of having their own house despite the lingering impacts of the pandemic.

The company delivered a total of 2,634 new homes in the first quarter, but housing production fell 50 percent due to the community restrictions imposed by the local government units due to the pandemic.

Luzon had the biggest revenue contribution at P2.6 billion, followed by Visayas at P958.5 million and Mindanao at P878.3 million.

The company sold 1,272 units in Luzon, 801 units in Visayas, and 561 units in Mindanao for the quarter.

Its net income margin declined to 34.67 percent for the quarter, lower than the 38.12 percent last year due to the Bayanihan 1 and 2 laws, which allowed homebuyers to suspend payments for a few months.

Its performing accounts ratio, or the number of its customers paying their amortization before it becomes due, fell to 85 percent from more than 90 percent in the previous quarters.