*on buyback* 8990 Holdings, Inc.

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8990 plans 3-4 leisure projects in next 5 years

HOUSING developer 8990 Holdings, Inc. is planning to launch three to four leisure properties every year within the next five years.

“We recognize the fact that tourism is really a permanent fixture already in the Philippine landscape and secondly, we want to build up on our recurring income and we feel that the subsidiary we are going to embark in — this company which handle the resorts and hotels — we will be able derive in five years, at least 20%-25% of our gross income from this company,” Mariano D. Martinez, Jr., 8990 Holdings chairman told reporters on the sidelines of the subsidiary’s launch on Nov. 14 at the Green Sun hotel in Makati City.

The newly formed unit 8990 Leisure and Resorts has earmarked P5 billion for the development of three hotel brands: Adama, a five-star luxury family resort; Kura, a luxury hotel; and Argo, an urban hotel.

During the event, the company said it will launch the Adama resort brand in Puerto Princesa, Siargao, Lapu-Lapu City, Baguio, Boracay and Siquijor.

The Argo brand will be introduced in Cebu, Iloilo, Manila, Makati, Alabang, Legazpi and Clark.

Kura, described as a luxury hotel “a notch lower than a Mandarin Oriental,” will be in the same locations as the Argo hotel except in Legazpi and Clark.

Mr. Martinez said the company plans to open the first Argo hotel in December. Located along EDSA, the hotel will offer 250 rooms with sizes ranging from 13 square meters (sq.m.) to 30 sq.m.

8990 is also planning to open the first Adama resort in Siquijor by the first quarter of 2020. The resort will have 22 family villas.

“Some of the locations [we chose] was because we already owned [the land]… but [in the case of] Siargao, it’s because we really like the place,” said Willibaldo J. Uy, president and CEO of 8990 Holdings, Inc., during the same event.

Mr. Uy said the launch of the Adama Siquijor resort will be timed with the opening of the new passenger terminal building of the Siquijor airport.

Mr. Martinez said they will continue to have construction company Megawide Construction Corp., as their preferred builder because of their technology.

Despite creating 8990 Leisure and Resorts, this isn’t the first time 8990 has entered the hospitality business, as it already owns two properties in Boracay and Baguio under the Azalea brand.

The good performance of the Azalea properties gave 8990 the confidence to build its hospitality portfolio, Mr. Martinez said. The Azalea brand will not be folded into 8990 Leisure and Resorts.

“We’re happy with what Azalea was able to give right now, but we’re going to develop already Adama, Kura and Argo,” Mr. Martinez said.

“Azalea started as a timeshare [property] and we’re not going to do timeshare anymore. That’s why we cannot weld the two together,” he added.

source: https://www.bworldonline.com/8990-plans-...t-5-years/



8990 Holdings allocates P10 billion for 2019 capex

MASS HOUSING developer 8990 Holdings, Inc. will be spending about P10 billion in capital expenditures next year as it builds up its hospitality portfolio.

8990 Holdings Chief Financial Office Roan Buenaventura-Torregoza said the capex for 2019 will be higher than the P8 billion the company committed to spend this year.

“We’ll probably spend around P10 billion next year… We’ll spend around P1 billion for the hotel if we go aggressive there,” Ms. Buenaventura-Torregoza told reporters during a round table interview in Makati on Monday.

The listed real estate firm recently disclosed its plan to launch three to four leisure properties every year in the next five years through newly-formed subsidiary 8990 Leisure and Resorts. It will be spending P5 billion to develop three hotel brands, namely Adama, Kura, and Argo.

Ms. Buenaventura-Torregoza said the first hotel project will be an Adama resort in Siquijor. The resort will have 22 family villas and is set to be completed by the first quarter of 2020.

8990 Holdings’ capex will support its plan to launch around P50 billion worth of projects next year, including housing projects in Davao, Cebu, Iloilo, Bulacan, and Bacolod.

The company will also start selling residential units from its project in Ortigas Extension, which consists of 22 buildings with 14 to 17 storeys each. It is spending P15 billion to construct the project, which has an expected sales value of about P38 billion from the sale of around 19,000 units.

“At this point we already have a pile of reservations… there are a lot of inquiries from Chinese and Koreans looking at the buildings,” 8990 Holdings President and Chief Executive Officer Willibaldo J. Uy said in the same interview.

Prices of units at the Ortigas Extension project will start at around P2 million, or P70,000 per square meter.

Asked for the company’s outlook in 2019, Mr. Uy said they are tightening their belts in order to keep prices within reach of their target market.

“Now that inflation rate is starting to go up, we’re doing a lot of belt tightening… because I don’t want it to affect the selling price as much as possible. Our market is the affordable housing market, and I feel that we should not anymore add to their problems,” Mr. Uy explained.

“But that being said, we’re still looking at, I’m going to recommend to the board a 10% increase on our prices.”

Meanwhile, Mr. Uy noted 2018 is expected to be another banner year for the company, as it is on track to hit the P11.5-billion target for revenues by year-end. Its net income is expected to reach about 39% of total revenues, or P4.49 billion.

8990 Holdings has already generated P8.63 billion in gross revenues during the first nine months of 2018, or 40% higher year-on-year. Net income attributable to the parent accordingly went up 38% to P3.41 billion.

source: https://www.bworldonline.com/8990-holdin...019-capex/


8990 taps SM Hypermarket as anchor tenant for mall

MASS HOUSING developer 8990 Holdings, Inc. has tapped SM Hypermarket as the supermarket operator for its first mall development in Tondo, Manila.

In a disclosure to the stock exchange on Monday, the listed firm said it has signed an agreement with SM Hypermarket to be the lead anchor tenant for Deca Mall, which is set to open in the second quarter of 2019.

SM Hypermarket will occupy 3,073 square meters (sq.m.), comprising about a sixth of Deca Mall’s 18,000 sq.m. worth of gross floor area.

“By bringing in SM Hypermarket as the anchor tenant of Deca Mall, Urban Deca Homes residents and those from the environs no longer have to travel far for their everyday shopping needs,” 8990 Holdings President and Chief Executive Officer Willibaldo J. Uy said in a statement.

The P452-million Deca Mall will also house up to 450 small and medium enterprises in addition to a tiangge at the second floor.

The mall stands within 8990 Holdings’ 13-tower residential complex called Urban Deca Homes Manila. This is the company’s second largest project to-date, following a similar project in Ortigas Extension that will be launched in the first quarter of 2019.

Urban Deca Homes Manila covers a total area of 8.4 hectares, offering more than 13,000 residential units valued at about P20 billion. 8990 Holdings targeted residents of Tondo, the Port Area, Intramuros, Divisoria, and the Camanava (Caloocan-Malabon-Navotas-Valenzuela) area for the project, addressing the housing needs of those living in these densely populated areas.

The property developer has already sold out all units in the project, given the low amortization rates of P9,000 to P11,000 per month.

8990 Holdings booked a net income attributable to the parent of P3.41 billion in the first nine months of 2018, 38% higher than the same period a year ago as gross revenues also surged 41% to P8.63 billion.

The company expects 2018 to be another banner year, targeting P11.5 billion worth of revenues and about P4.49 billion in earnings by year-end.

source: https://www.bworldonline.com/8990-taps-s...-for-mall/


8990 board approves P2-billion share buyback plan

8990 HOLDINGS, Inc. said on Monday its board of directors approved the plan to repurchase up to P2-billion worth of shares in the next 18 months.

“The purpose for the Share BuyBack Program is to enhance and improve shareholder value and to manifest confidence in the Company’s value and prospects through repurchase of the common shares,” the mass housing developer said in a disclosure in the stock exchange.

The share buyback program started on Feb. 1, and will end on Aug. 1, 2020.

8990 Holdings said it repurchase the shares using cash and book them as treasury shares.

“Buyback transactions will be triggered in the cases where: (i) the company stock is substantially undervalued, (ii) when there is high volatility in share prices, or (iii) in any other instance where a buyback would serve to enhance or improve shareholder value, each as reasonably determined by the Chairman, the Chairman Emeritus and the President (acting as a body),” the company said.

Shares in 8990 Holdings jumped 4.8% or P0.48 to close at P10.48 apiece in the stock exchange on Monday.

Last year, the listed real estate firm said it will be spending about P10 billion in capital expenditure in 2019 to boost its hospitality portfolio.

It also announced plans to launch three to four leisure properties every year in the next five years through newly-formed subsidiary 8990 Leisure and Resorts.

source: https://www.bworldonline.com/8990-board-...back-plan/


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