8990 Holdings Inc., listed on the Philippine Stock Exchange (PSE) under the symbol “HOUSE,” is acquiring a majority, or 68 percent, of the outstanding common shares of Cebu-based affordable developer Piccadilly Premier Land Inc.
The country’s leading affordable housing developer entered into an Investment Agreement with Piccadilly; RDAK Land Inc.; Acrissor Development Corp. and certain individuals for the said shares.
8990 will pay a total of about P88.28 million in cash for this transaction, with 50 percent payable upon execution of the Investment Agreement. Within the year, the balance is expected to be settled upon issuance by the Bureau of Internal Revenue of the Certificate Authorizing Registation of the shares purchased and presentment of the same to 8990, and the full transfer of all assets to Piccadilly, as major conditions of the final tranche of payment.
The agreement comes with an understanding that RDAK and Acrissor also assign certain assets and receivables to Piccadilly. These assets include the Bayanihan Flats Mactan 1 and Bayanihan Flats Mactan 2 projects.
Together, the three above-mentioned firms are all established property developers that have successfully completed affordable projects in Cebu City.
8990 president & CEO Anthony Vincent Sotto expressed his satisfaction with the closing of this Cebu acquisition, considering that Cebu remains one of 8990’s main markets.
“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.
