Filinvest inks property deal with Cebu City

ABS-CBN News

Posted at Feb 03 2009 05:25 PM | Updated as of Feb 04 2009 01:55 AM

Gotianun-led Filinvest Land Inc. has executed a joint venture agreement with the local government of Cebu City for the development of part of the South Road Properties, the listed firm told the Philippine Stock Exchange.

The agreement covers 50.6 hectares of the total 210-hectare South Road Properties.

Under the deal, Filinvest Land would purchase 10.6 hectares of the prime lot and join the Cebu City government in developing the remaining 40 hectares in four phases over a period of 20 years and subject to prevailing market conditions.

Filinvest Land said Cebu City would be guaranteed a minimum return of profit from the development.

Earlier reports said Filinvest had agreed to pay P1.5 billion for the piece of land it would acquire while the whole joint venture project was valued at P25 billion.

The South Road Properties were reclaimed by Cebu City and declared alienable and disposable properties of the city in May 2005.