8990 sets 8-billion capex for 2016

Top mass housing developer 8990 Holdings, Inc. is allocating 8 billion in capital expenditures for 2016 to pursue more aggressive landbanking and construction activities.

In an interview, 8990 President Januario Jesus Atencio revealed plans to increase the firm’s landbanking budget by 50 percent to 3 billion from the 2 billion allotted for this year.

The company will also invest about 5 billion for the construction of its ongoing and new horizontal and vertical projects. The capex will be funded by a combination of internally generated cash as well as bank financing.

Atencio said they intend to launch 15 new projects next year for a total of 14,000 condominium and mass housing units worth about 12 billion. He said project cost is about 40 percent of the market value.

Projects to be launched next year include two properties in Iloilo with a combined area of 140 hectares, a 30-hectare project in Mactan, and two medium rise building (MRB) project in Tisa and Banilad, both in Cebu City.

The firm will also launch four projects in Davao, and a 60-hectare project in Bacolod aimed at the slightly higher than socialized housing market price of about 750,000 per unit.

Also to be launched next year is a 14-hectare project in Marilao, Bulacan on land acquired from Vitarich Corporation. The project will be a combination of MRBs, townhouses and terrace houses. The company also has two projects in Cavite, Hampton and Mahogany, as well as two condominium with mall complexes in Tondo and Ortigas.

Together with seven projects already launched this year, 8990 will be working on a total of 22 projects next year.

The firm expects to generate 20 billion in revenues from the sale of residential condominium units in 8990 Deca Homes Manila in Vitas, Tondo from 2016 to 2019.

The firm recently broke ground for the residential condominium complex with a mall in Tondo, Manila where it expects to spend 8.55 billion, consisting of 8.05 billion for 13 condominium buildings and about 500 million for the mall.

Atencio said the project will have 13 residential buildings with 13,212 housing units and 2,226 parking slots.

It is also building a full service 2-storey mall tentatively called the DECAmall that will have about 10,000 square meters of leasable space.