8990 Holdings Inc. buys Iñigos’ 100-hectare property in Davao

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DAVAO CITY—Mass-housing developer 8990 Holdings Inc. said it acquired a property from the Iñigo family that would become the company’s fifth development in Davao City.

Januario Jesus Gregorio Atencio III, the company president and CEO, said that the property it bought is a 100-hectare estate in the southern part of country’s largest city.

He did not disclose the amount of acquisition.

Atencio said the property firm, known for its wakeboard parks as one of its amenities in some of its developments, has been in talks with the Iñigo family for more than a year before he sealed the deal.

“We will start the project probably at the earliest in 2017. We already have our inventory for 2017,” Atencio told reporters.

Atencio said 8990 Holdings may spend an estimated P4.3 billion to build around 6,500 units that it will develop over a five-year period. It will replace its project in Mintal, where its wakeboard park is located. The company said it will conclude the development after seven years.

The company is confident that Davao’s property market will continue to grow in the coming years as people migrate into the city, one of the country’s safest, from the different parts of Mindanao.

Aside from Davao, Atencio said the company will expand its footprint in other sites across the country, including in Zamboanga and Bacolod, but the size of these properties combined is smaller compared with the new acquisition in Davao.

The company plans to build a total of 11,083 housing units this year, 44 percent of which will be in Luzon, 31 percent in the Visayas and 25 percent in Mindanao.

It successfully raised P9 billion from its maiden-bond offering, proceeds of which will be used to pay off its expensive debts. The company held a road show in Cebu and Davao for its retail-bond offering, which has tenors of five, seven and 10 years.

For the first quarter of the year, the company’s income was flat at P937 million, as the company’s performance last year was so good that it’s difficult to match, Atencio said. For this year, however, the firm is still targeting a net-income growth of between 15 percent and 21 percent to about P3.8 billion to P4 billion. Revenue growth, meanwhile, is estimated to grow between 22 percent and 27 percent at P9.6 billion to P10 billion.