8990 sees doubling of revenues in 2017 as NCR projects pick up

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OSAKA, Japan—8990 Holdings Inc., a developer of mass-housing projects, said it may reach its goal of doubling its revenues by 2017 from this year’s target as its Metro Manila projects are seen to be performing well.

Januario Jesus Gregorio Atencio III, the company’s president and CEO, said the company is “seriously studying” and reviewing its figures as the company has now a “better feel” of its Metro Manila projects of mostly high-rise condominium projects and some with retail space.

“We are actually trying to find the way if we can grow 100 percent in 2017 [from this year]. We are looking very hard, studying very hard how we can double [our revenues],” Atencio said.

Atencio added that the company’s revenues are growing at about 20 percent annually since it went public in 2014.

For this year, it is targeting 24 percent increase to P12 billion from last year’s P9.65 billion.

At that pace of growth, the company’s revenues will increase to P14 billion by 2017. But Atencio said that amount is only being produced by its provincial project, as evidenced by last year’s figures.

“Another P14 billion will now be NCR [National Capital Region], Metro Manila. If I am able to do that, so this year’s P12 billion [in revenues] becomes P28 billion by next year,” Atencio said.

“I got the landbank I need to pull it off at 500 hectares,” he said.

The landbank came from the accumulated property it had over the years.

Its Metro Manila projects include a complex of high-rise residential buildings in Vitas in Tondo,  Manila, and another in Ortigas Extension in Pasig. Both projects include a small shopping mall, which 8990 itself will operate.

Of the two, only the Tondo, Manila, project has broke ground and the company still has to sell the units there. 8990, meanwhile, still has to start the Ortigas project.

It also has a stand-alone condominium projects in Mandaluyong and another in Cubao in Quezon City. Atencio said the company also has a string of land acquisition, just like the Las Piñas lot that the company plans to spend some P3 billion to also develop a complex of residential and commercial buildings.

8990 is launching some 14 new projects with a total of 75,000 residential units all over the country this year, though the first phase will only cover 7,000 units with a combined sales worth P7.2 billion. 8990 units average of P1 million.

Sales from previously-launched projects are expected to take up the slack of the 2016 target, bringing the company’s sales to the P12-billion goal.

The projects include horizontal developments under the Deca Homes brand in Bulacan, Iloilo, Cebu, Davao and Bacolod, as well as medium-rise building projects under the Urban Deca Homes in Cavite, Cebu and Manila.

Last year, the company booked an income growth of 23 percent to P4.05 billion, from the previous P3.31 billion on the back of the company’s sales and delivery of projects from its development all over the country.

Core business income, which comprises housing and contract to sell net revenues, breached the P10-billion mark with P10.7 billion, from P8.4 billion last year, registering a 27-percent increase.

Income from contract to sell receivables jumped 33 percent to P1.2 billion from P900 million.

Atencio said about 85 percent of total revenues came from its brand of subdivisions located in Cavite, Pampanga, Iloilo, Davao and General Santos, while 15 percent were contributed by medium-rise projects in Cebu and Muntinlupa.