Low-cost housing developer 8990 Holdings Inc. on Monday bared plans to spend P8 billion as capital expenditures this year, roughly the same amount spent last year as the loan take outs of clients accelerate in the second half.
Roan Buenaventura-Torregoza, chief financial officer, said 8990 will fund the capex through the Pag-IBIG take outs of its home buyers.
According to Torregoza, the property firm funded past capex programs with the loan take outs of clients from the Home Development Mutual Fund, more known as Pag-IBIG, and managed to migrate P6 billion worth of take outs thus far. Loan take outs from various banks worth P300 million form part of the fund.
Torregoza said the company has since funded its capex in this manner rather than securitize its receivables since the business does not have enough receivables to give the banks.
She said receivables available for securitization have diminished to only P1.9 billion from P5 billion pre-pandemic.
Anthony Vincent Sotto, 8990 president and CEO, said the company plans launching four major projects to include Deca Homes, an eight-storey condominium project in Batangas; Deca Homes Guadalupe in Cebu City, which is a mix of economic and socialized housing units; the Rice at Monterrazas also in Cebu, which is a high-end condominium project; and the second phase of Monterrazas Prime.
Sotto said the business is also developing Deca Homes Grenada, a 50-hectare socialized housing project in Bacolod.
The property developer projects more revenue from Urban Deca Homes-Banilad in Mandaue City, Cebu and the new Deca Homes Pampanga phase 1 project as turnover schedules are met.
Sotto said the business is optimistic of greater revenue growth this year as the property developer gets reaccredited with the Pag-IBIG Fund and ascribing its low first-quarter revenue performance to lack of accreditation. Pag-IBIG loan take outs only ramped up in February this year, he said.
As at end-March this year, 8990’s land holdings total 709.35 hectares with the addition of properties in Cebu and Leyte.
Sotto estimated future projects will contribute P155 billion over the next seven to eight years, its Luzon land bank generating revenue of P98 billion with the Visayas and Mindanao adding P67 billion and P6 billion, respectively.
