MASS housing developer 8990 Holdings Inc., which is known for its homegrown brand Deca Homes, said it will build 11,083 houses and condominium units within the year.
Of the number, around 1,800 will be in Cebu, specifically Cebu City and Talisay City.
Speaking before 700 participants of the Cebu Entrepreneurship and Investment Summit 2015 at SM City Cebu Trade Hall last Saturday, 8990 Holdings President and Chief Executive Officer Januario Jesus Atencio said the publicly-listed company is targeting a gross income of P10 billion this year and net earnings of P4 billion.
In 2014, its net income was P3.3 billion, exhibiting a 51 percent increase from 2013’s P2.2 billion.
“Our revenue increased by 43 percent while operating expense only increased by 36 percent (in 2014),” Atencio said.
The official expressed confidence in this year’s performance, citing the ever-increasing demand for affordable houses. Availability of its in-house financing scheme, bearing an interest rate of eight percent per annum, is also attracting buyers to their projects, he said.
“Our business model in 8990 is like this: fast construction, accessible in-house financing, and a proactive credit and collection platform,” the official said.
Unlike most developers asking for a 20 percent down payment for the acquisition of one dwelling, Atencio said 8990 only asks for an amount equivalent to two percent of the housing price.
In Cebu alone, 8990 has already constructed around 15,000 houses and condominium units, according to the company’s General Manager for Construction and Engineering Alexander Ace Sotto. These are scattered in Minglanilla, Talisay City, Cebu City, Mandaue City and Lapu Lapu City.
Atencio boasts of the company’s commitment to build a house in just a matter of eight days.
In the stock market, 8990 reflects this bullishness. Since its re-IPO (initial public offering) last May 14, 2014, its price per share has grown from P6.50 to P8.70 exactly a year after. This is equivalent to a price growth of 33.84 percent.
Within the year, the company is also planning to start the development of a wakeboard park in Iloilo, which will cater to their homeowners in the Visayas. The company also maintains wakeboard parks in Luzon and Mindanao.
Published in the Sun.Star Cebu newspaper on June 15, 2015.
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