8990 eyes P2.5-billion securitization deal
Credit to Author: Tyrone Jasper C. Piad| Date: Mon, 25 Nov 2019 17:01:46 +0000
MASS housing developer 8990 Holdings Inc. is eyeing to complete its P2.5-billion securitization deal before the year ends to raise funds for projects in 2020.
In a disclosure on Monday, the listed property firm said the deal would “open the doors to sustainable housing finance which will allow developers to focus on the business of building homes.”
“Securitization will allow 8990 to access funding through the conversion of cash flows from its contract-to-sell receivables into asset backed securities that would provide investors high yields,” it noted.
The deal is expected to roll out by first quarter next year.
This, as it inked a purchase agreement to sell P10-billion contract-to-sell receivables to Fillmore Resource Holdings Inc. Philippine National Bank financed the said transaction.
8990 earlier this month also sold P5 billion worth of receivables to Dearborne Resources and Holdings Inc.
The property firm has been liquidating parts of its receivables in the past two years — bringing to a total of P25 billion — to fund expansion plans while being less dependent on debt portfolio.
The housing developer set this year’s capital expenditure at P4 billion, which it intends to double next year to “support its goal of hitting P20 billion in 2020 as its largest project, Urban Deca Homes Ortigas.”
The property developer sees P154 billion in sales from this property in the next years.
Earlier, 8990 said it was approaching its full-year revenue target after registering double-digit growth in topline figures during the first nine months of 2019.
Its nine-month revenues grew by 22 percent to P10.5 billion — representing 78 percent of the full-year target of P13.5 billion — from P8.6 billion the previous year.
The listed firm attributed the robust growth to Urban Deca Homes in Manila, which was able to sell five buildings of the 13-tower residential complex less than a year after its launch. This translated to P4.2 billion in revenues or 43 percent of the total topline figures.
8990 reported unrealized revenues of P3.6 billion as of end-September, P2.1 billion of which is expected to be realized this year.
8990 shares climbed 2 centavos or 0.13 percent to end at P14.84 each on Monday.