Malaysian fund buys stake in PH mass housing developer

MANILA, Philippines – The Malaysian government’s investment arm is entering the Philippine market with the planned acquisition of an 8% interest in a publicly listed mass housing developer for P2.95 billion (around US$66 million).

In a statement posted on its website, Khazanah Nasional Berhad said it would participate, though its special purpose vehicle Pasir Salak Investments Ltd., in the planned share sale of Philippine company 8990 Holdings Inc.

“The investment represents Khazanah’s first foray into the Philippines, which will allow Khazanah to gain exposure to the country’s unique growth story,” it said.

Khazanah is Malaysia’s strategic investment fund. It has investments in over 50 major companies, both in Malaysia and abroad.

8990 Holdings, formerly IP Converge Data Center Inc., is a leading developer in the under-served mass housing segment in the Philippines, having sold over 26,000 housing units in several completed and ongoing projects.

The property firm early this month secured approval from the Securities and Exchange Commission to sell shares to raise as much as P17.5 billion in proceeds.

8990 Holdings will sell up to 1.379 billion shares, of which at least 70% will be sold to overseas investors, and 30% to domestic investors.

Of the proceeds, P10.66 billion will be used to repay existing obligations.

8990 Holdings appointed UBS as the sole global coordinator, international bookrunner and lead manager while UBS Investments Philippines Inc. and SB Capital are the domestic lead underwriters.

8990 Holdings operates under the brand names Deca Homes for horizontal developments, and Urban Homes for medium-rise buildings.

Khazana said with an established track record, 8990 Holdings was well-positioned to address current shortage of affordable housing in the Philippines, and could provide the know-how for affordable housing development in Malaysia and in the region. – Rappler.com