US investment group to invest P2.9-B in PH developer


Posted at May 01 2014 05:20 PM | Updated as of May 02 2014 01:20 AM

MANILA, Philippines - International investment company TPG Capital is buying a P2.9 billion stake in Philippine low-cost housing company 8990 Holdings.

TPG Capital had previous holdings in big names like Del Monte Foods and Tiger Airways, and current holdings in Neiman Marcus and China Grand Automotive.

It has diversified investments ranging from food to telecoms to pharmaceuticals.

"We are thrilled to participate with 8990, the largest home builder in the Philippines, as they address an important need in the country with very attractive and affordable housing," Tim Dattels, managing partner of TPG Asia, said.

TPG's buy-in matches that of Malaysia's state-owned investment company Khazanah Nasional Berhad. They are both investing roughly 9 percent of 8990's current market capitalization.

This is the first Philippine investment for both companies, part of P9 billion in fresh funds 8990 raised through a follow-on share sale at P6.50 per share.

The company's share price closed at P6.85 in Wednesday's trade.

8990 is a mass housing developer focused on the low-end of the real estate market. Its main brand is Deca Homes. - ANC