MANILA, Philippines – Waltermart Group of Companies, a partnership between the Lim family and SM-led SM Retail Incorporated, has backed out from its joint venture with mass housing developer 8990 Holdings that was supposed to build malls in Ortigas and Tondo.
"Waltermart has rescinded its partnership with 8990 to be the mall operator in the malls to be built in 8990’s project located at Vitas, Tondo and at Ortigas Avenue Extension," 8990 Holdings CEO Januario Jesus Atencio said in an interview, without disclosing further details.
"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," Atencio added.
Last April, 8990 Holdings selected Waltermart Group of Companies to be the mall operator for its two mixed-use developments in Metro Manila.
Eyeing new partner
Atencio said the company is considering getting a new partner.
Other mall developers that have previously expressed interest in partnering with 8990 Holdings for mall development were DoubleDragon Properties Incorporated, and Metro Retail Stores Group Incorporated of the Gaisano group.
8990 Holdings is developing a mall with 45,000 square meters of gross floor area (GFA) within its 13-hectare development in Ortigas Avenue Extension and another shopping mall with 35,000 square meters of GFA in its 8.5 hectare residential development in Vitas, Tondo.
The property firm’s plan to venture into mall development is aimed to provide the company with stable recurring income that would complement its residential sales.
On Tuesday, 8990 Holdings reported its net income in 2015 increased 23% to P4.05 billion ($84.52 million), exceeding the full-year target of P4 billion ($83.48 million).
Gross sales rose 24% to P9.65 billion ($201.4 million) from P7.79 billion ($162.58 million) amid strong sales and increased construction capacity.
In 2015, it acquired close to 500 hectares of land with an expected yield of a little over 100,000 housing units worth P109 billion ($2.27 billion).
The company purchased lands in Davao, Iloilo, Bacolod as well as in Las Piñas and Cubao last year.
For 2016, the property firm is expecting net income to increase by 20% to P4.8 billion ($100.18 million) while revenues are expected to jump by 24% to P12 billion ($250.45 million).
It also plans to launch 14 new projects this year, which would add 75,608 units worth P7.3 billion ($152.35 million) to its inventory. – Rappler.com
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