by
VG Cabuag - October 30, 2015[ businessmirror.com.ph ]
LOW-COST housing developer 8990
Holdings Inc. on Thursday said it signed a memorandum of agreement with the
Bank of the Philippine Islands for the purchase of P1 billion worth of in-house
contract to sell (CTS) being handled by the developer.
8990 said in its disclosure to
the Philippine Stock Exchange that BPI Family Bank will process the conversion
of CTS handled in-house by the developer and turn it into a mortgage loan under
BPI’s own housing program.
“The arrangement carries a
limited recourse period of only two years. The actual date of purchase shall be
on October 30, 2015,” the company said in a statement.
The recourse ends once the CTS is
converted into a mortgage loan even before the two-year recourse period lapses,
said Januario Jesus Gregorio III Atencio, the company’s president and CEO.
“The agreement with BPI Family is
a significant milestone for 8990, as it signals the growing acceptability of
house’s CTS receivables with the banking sector, paving the way for the
creation of alternative housing finance in the private sector not only for 8990
but also for the entire mass-housing sector,” Atencio said.
He said the company will pursue
similar arrangements with other banks and financial institutions in the near
future.
For the first half of the year,
the company said it had delivered 2,044 accounts to Home Development Mutual
Fund, also known as the Pag-IBIG Fund, for take-out equivalent to about P1.9
billion.
“We note that our performance, in
just two quarters, has already surpassed 2014’s full-year take-out value of
P1.8 billion,” the company said.
“I have often said that the
challenge has never been to create a long-term market for primary housing. It
is already there. It is huge and it is growing at a rate faster than the supply
of affordable housing in this country. The challenge lies in how genuine our
understanding of this market is—how their aspirations, values and realities
determine their behavioral, psychological and spending patterns,” Atencio said.
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