8990 Holdings expects P2-B earnings this yr

MANILA, Philippines - 8990 Holdings Inc., the company behind mass market brands Deca Homes and Urban Homes, said it expects to breach the P2-billion profit mark this year.

The company is banking on continuous brisk demand from the affordable mass housing sector in Visayas and Mindanao.

In a statement, 8990 Holdings said its net income is targeted to climb 30-40 percent this year from P1.71 billion in 2012. For the first quarter alone, 8990 Holdings pegged its profit guidance at P700 million.

“Such results clearly indicate an upward trend that will bring us to a higher level of record profits this year,” said 8990 Holdings president and CEO Jesus Atencio.

“Our commitment to provide affordable mass housing under our Deca Homes brand shall continue to be the principal driving force of this growth,” Atencio said.

Deca Homes claims to be one of the largest and most profitable low-cost real estate companies in the country.

It has developed 51 subdivisions with more than 41,000 housing units turned over in its 22 years of operation.

So far, Deca Homes has 10 ongoing residential projects located in Pampanga, Cavite, Iloilo, Cebu and Davao, while also managing two wakeboard parks: the Deca Wake Park Davao and Deca Wake Park Clark.

Last week, the 8990 Group of Companies said it is a step closer to a backdoor listing in the local bourse through dormant holding IP Converge Data Center Inc.

IP Converge’s board of directors approved the purchase of a total of 3.83 billion shares in 8990 Housing Development Corp., 8990 Luzon Housing Development Corp., 8990 Davao Housing Development Corp., 8990 Leisure and Resorts Corp., 8990 Mindanao Housing Development Corp. and Fog Horn Inc., collectively known as the 8990 Group of Companies.

In exchange for the transfer, IP Converge will issue 3.96 billion shares to 8990 Holdings.

The holding firm said it plans to securing additional funding from the capital market to increase the existing landbank.

The 8990 Group of Companies, owned by the triumvirate of Jesus B. Atencio, Luis Yu Jr. and Mariano Martinez, earlier said it is preparing to offer as much as P8 billion worth of shares through a follow-on offering.

The company expects the country’s housing backlog of 3.8 million units to rise to 4.65 million by 2016.

8990 Holdings is currently building 22,446 housing units with an estimated aggregate value of P15.6 billion.

The entry of 8990 Holdings in the local bourse follows a series of successful backdoor listings of several large companies last year.

The local unit of Macau casino giant Melco Crown Entertainment Ltd. conducted a backdoor listing through Manchester International Holdings Unlimited Corp., conglomerate LT Group Inc. of magnate Lucio Tan through Tanduay Holdings Inc. and real estate firm Century Properties Group Inc. through East Asia Power Resources Corp.