8990 Holdings buys owners of 8.6-hectare lot in Tondo as part of land bank strategy

Listed property developer 8990 Housing Development Corp. has bought two companies, both owners of an 8.6-hectare lot in Tondo, Manila for P1.6 billion as part of a strategy to expand its land bank across the Philippines.

 

In a disclosure to the Philippine Stock Exchange Wednesday, 8990 Housing said it acquired Euson Realty & Development Corp. and Tondo Holdings Corp., both of which own a vacant lot sandwiched by Vitas and Velasquez Streets in Tondo, Manila.

 

"They are different companies but they own the 8.6-hectare Vitas [and Velasquez] lot," 8990 Housing president and CEO Jesus Atencio told GMA News Online by phone.

 

The company will develop a medium-rise, integrated mall with 15,000 low-cost units in the Tondo property, to be undertaken by subsidiary 8990 Housing Development Corp., he added.

 

"The property is strategic because Vitas is probably the most dense area in the entire Philippines," Atencio said.

 

The company bought the 255,000 shares of Euson Realty for P790.98 million and the 5,301,039 shares of Tondo Holdings for P823.659 million. The transactions totaled P1.615 billion.

 

"The purchase by 8890 of 100 percent of the total issued and outstanding capital stock of [Euson Realty and Tondo Holdings] will expand and improve the Group's land portfolio," the disclosure read.

 

Euson Realty and Tondo Holdings are companies that primarily buy and sell real estate.

 

The Tondo lot is the fourth acquisition of 8890 Housing in Metro Manila and the first in the City of Manila, Atencio said.

 

The other properties are in the Cities of Pasig, Makati and Mandaluyong.

 

The company raised P5.4 billion from a follow-on offering, and the 1.24 billion offer shares were listed on the Philippine Stock Exchange on May 14. 

 

8990 Holdings intends to use the net proceeds from the share sale to double its land bank of 250 hectares by another 250 hectares. – VS, GMA News