8990 Holdings sets P3-B capex for 2018

MANILA (Philippines News Agency)  — Listed mass housing developer 8990 Holdings Inc. is earmarking PHP3 billion in capital expenditures (capex) for 2018, higher than this year’s PHP2 billion, to launch more residential projects.

Incoming president and chief operating officer Willie Uy said the company aims to introduce to the market at least five residential projects next year in Iloilo, Cebu, Davao, and Ortigas Extension in Metro Manila.

“If the permits will start coming out, there is a possibility that other projects can be launched also within the year,” Uy told reporters on Monday.

He said it is now applying permits for other locations, including Las Piñas and Cubao, Quezon City.

“(Next year’s capex will be used) mostly for construction of high-rise projects because these are highly capitalized. On landbanking, we will just replenish the land. The landbank strategy (is to acquire) 500 hectares at any given point in time,” said company chief financial officer Roan Torregoza.

The company currently has a land bank of 554 hectares.

“In the next 10 years, I don’t think the demand for housing in our price levels will subside,” added Uy. “At levels of below PHP2 million, this is the market that needs houses.” (PNA)