Mass housing developer 8990 Holdings Inc. said over the weekend it is acquiring a majority, or 68 percent, of the outstanding common shares of Cebu-based Piccadilly Premier Land Inc.
The country’s leading affordable housing developer said it signed an investment agreement on June 9 with Piccadilly, RDAK Land Inc., Acrissor Development Corp. and certain individuals on the acquisition of the shares.
8990 said in a statement it would pay P88.28 million in cash for the transaction, with 50 percent payable upon execution of the investment agreement. It said the balance would be settled upon issuance by the Bureau of Internal Revenue of the certificate authorizing registration of the shares and the full transfer of all assets.
It said the agreement comes with an understanding that RDAK and Acrissor will also assign certain assets and receivables to Piccadilly. These assets include the Bayanihan Flats Mactan 1 and Bayanihan Flats Mactan 2 projects.
The three firms are established property developers that completed affordable projects in Cebu City.
8990 president and chief executive Anthony Vincent Sotto expressed satisfaction over the acquisition.
“While it is too early to tell how much this acquisition will contribute to our revenues, we are excited and optimistic with this transaction. Their existing portfolio of affordable-priced projects is expected to complement our current slate of projects and broaden 8990’s reach in property development,” Sotto said.
8990 Holdings reported an unaudited net income of P1.9 billion in the first quarter, up by 22.7 percent from a year ago as gross revenues climbed 16.7 percent to P5.22 billion.
Sotto, citing the strong first-quarter performance, expressed confidence the company’s upcoming projects would meet the needs of its key mass housing client base.