MANILA, Philippines — Mass housing developer 8990 Holdings Inc. had sold P5 billion worth of contract-to-sell (CTS) receivables to a local financial holding firm.
In a disclosure to the Philippine Stock Exchange, 8990 said the receivables were sold to Dearborne Resources and Holdings Inc.
The transaction was funded by China Banking Corp.
“The purchase price was based on the outstanding principal balance of the receivables…This brings the company’s total receivables sold to P15 billion in the past two years.
In 2018, 8990 reported that a total of P10 billion of CTS receivables were liquidated.
The company emphasized that it has been accelerating the sale of its receivables as it focuses on funding its various projects through internally generated cash and lessening its reliance on debt.
8990’s receivables portfolio stood at P20.9 billion as of the end of September.
This is expected to decline further following the sale of the P5 billion CTS receivables and upon the completion of the company’s P2.5 billion securitization deal by yearend.
The property developer earlier announced it would spend P4 billion on its various projects nationwide for this year.
8990 plans to double its capital expenditure next year in line with supporting its goal of hitting P20 billion in revenues.
This will also be fueled by the topline contribution of Urban Deca Homes Ortigas, its largest Metro Manila project, starting the end of next year.
The company launched Urban Deca Homes Ortigas located along Ortigas Avenue Extension with a total of 19,046 condo units.
8990 reported that reservation sales reached P1.5 billion just two months after the project’s launch.
Reference Link: PhilStar