8990 to operate malls after Waltermart backs out
Mass housing developer 8990 Holdings Inc. may venture into the mall operations business after its partner Waltermart has backed out of their agreement to operate the malls in two of the developer’s mixed-use projects.
In a disclosure to the Philippine Stock Exchange, 8990 said “Waltermart has rescinded its partnership with 8990 to be the mall operator in the malls to be built in 8990’s project located at Vitas, Tondo and at Ortigas Avenue Extension.”
“While we regret the turn of events, this presents an opportunity for us at 8990 to operate the mall ourselves, leading to a strong potential for enlarging our recurring income base,” 8990 investor relations officer Tani Basman said.
According to 8990 president Jesus Januario Atencio, the malls of the two projects will have a total gross floor area of 80,000 square meters, 35,000 for Vitas and 45,000 in the Ortigas development.
Atencio said they are ramping up construction for 8990’s high-rise segment by building 39 condominiums worth P53 billion in the two Metro Manila township projects.
This will mark 8990’s entry into commercial space development by turning the two properties into mixed-use residential projects with an “integrated mall” as its major amenity.
The integrated mall will be the main attraction in the two master planned developments that will include mixed use midrise and low cost condominiums.
“We are very excited about this project because the integration of a mall adds significant value to our mass housing projects,” said Atencio.
The two projects will have a combined gross area of 22 hectares, covering 39,732 units: the 13-hectare Urban Deca Homes along Ortigas Avenue Extension township, and the 8.4-hectare Urban Deca Homes in Vitas Tondo.
The Ortigas township will have 26 buildings and a total of 24,720 residential units while the Tondo project will have 13 buildings and a total of 15,012 residential units.
Both projects will have parks and playgrounds, basketball courts, and the major amenity of a full-service mall that will have shopping, dining, recreational and institutional establishments that will cater primarily to the residents, estimated to reach 120,000 once both projects are completed.
These two projects have an estimated gross value of about P53 billion over the next four years, which more than doubles the P24 billion investment in land and building construction.
Read more at http://www.mb.com.ph/8990-to-operate-malls-after-waltermart-backs-out/#rrerYEcuh5xRhh5u.99