Mass housing developer 8990 Holdings, Inc. (HOUSE), the company behind the Deca housing projects, is acquiring a major share in a property development company controlled by prominent Cebuano businessman Ricarido Delfin A. King.
This is the second Cebuano property development company that 8990 has acquired. The first, Genvi Development Corp. of the Villalon family, was acquired in 2019.
In this latest acquisition, 8990 will own 68% of Piccadilly Premier Land, Inc. after a share sale transaction valued at P88.27 million.
Top executives of 8990, Piccadilly, RDAK Land, Inc., and Acrissor Development Corp. signed an investment agreement in Cebu City on June 9, 2022, the mass housing developer said in a disclosure to the Philippine Stock Exchange.
The transaction involves a transfer of assets and liabilities from RDAK Land, Inc. and Acrissor Development Corp. to Piccadilly, and the transfer of real estate assets by certain individuals to Piccadilly.
Piccadilly is developing Orchard Drive, which consists of One Garden and Bayanihan Flats, in Barangay Binaliw in Cebu City. RDAK Land, the real estate unit of the King Group of Companies, and Acrissor, which is also owned by King, developed the Bayanihan Flats 1 and 2 on Mactan Island.
The Bayanihan Flats projects pioneered the “Puyo Dayon” (move in immediately) concept.
Joint venture agreements will be signed for both Bayanihan Flats projects in Mactan as well as RDAK Land’s low-cost housing project in Barangay Guba, Cebu City.
Under the investment agreement, 8990 will acquire 994,160 common shares of Piccadilly, composed of 438,910 shares held by RDAK Land and 555,250 shares held by individual shareholders for P88.79 per share.
“The amount was determined taking into consideration the agreed-upon valuation of Piccadilly together with identified assets and liabilities of RDAK and Acrissor as of March 15, 2022,” 8990 said in its disclosure.
Half of the total purchase price, or P44.13 million, was payable upon the execution of the investment agreement.
In its disclosure, 8990 said this transaction is expected to “expand 8990's footprint in property development.”
The company has developed affordable housing projects under the brands Deca Homes and Urban Deca Homes across the country.
It ventured into the high-end property development sector when it acquired Genvi and took over the development of Monterrazas de Cebu, a high-end residential and commercial project in the uplands of Cebu City.
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HOUSE shares closed higher at P10.48 apiece on Friday, June 10, 2022, a day after the signing of the investment deal. (Marites Villamor-Ilano / Ventures Cebu)