Makati—(PHStocks)—8990 Housing Development Corp., a subsidiary of mass housing giant 8990 Holdings Inc. (PSE: HOUSE), has signed with Megawide Construction Corp. (PSE: MWIDE) a Memorandum of Agreement to construct 8990’s new condominium project in Quezon City, the Urban DECA Towers-Cubao.
Megawide shall be the general contractor for this project that will cost P3.6 Billion, with gross earnings expected to reach P7.2 billion. Period of completion is pegged at 48 months, with the initial delivery of lower ground units by the third year.\Located along EDSA corner Banahaw Street, fronting the Farmers Market in Araneta Center, the new offering will have 45 floors, inclusive of two floors of 651 parking slots, 8 floors of 260 commercial spaces and 35 floors of 5,207 units.
“We are building our second condominium on a 4,310 sqm. lot that will expand our ‘halfway house’ concept after the success of our initial building in EDSA Pasig,” explained 8990 CEO JJ Atencio.
Under 8990’s “halfway house” concept, the units measuring 13 sqm will come fully furnished with beds, cabinets, complete toilet and bath, table and chairs, air condition units and microwave.
8990’s first “halfway house” condominium, located along EDSA between Shaw Boulevard and VM Potenciano Medical Center, is already 100 days ahead of its construction schedule and 55% sold when its sales was launched in January 2016. The first EDSA Tower is expected to top-off this August and delivery of the first 200 units is targeted for delivery to individual buyers by the fourth quarter of this year.
Atencio added that “with about 10 million workers in Metro Manila looking for living spaces near their work places, the ‘halfway house’ concept is the better alternative to bedspacing or renting in dormitories and sharing apartments in the weekday where our buyers can enjoy quality of life while retaining their primary residences outside the metropolis which they can come home to in the weekends.”
The 8990 CEO also stated that with retail prices starting at PhP1.2 to PhP1.5 million per unit, monthly amortizations become very affordable, highlighted by the value proposition of living in a highly accessible prime location like Cubao. The location of the project is near the Cubao Station of the MRT.
Earnings of 8990 Holdings grew by 10 percent to PhP1.03 billion from January to March this year compared to PhP937 million in the same period last year. For 2016, the mass housing developer sees its net income growing by 20 percent to PhP4.8 billion on the back of a 24 percent increase in revenues to PhP12 billion.