Filinvest to rescind purchase of R6.76-B Cebu City gov’t land

The Filinvest consortium has decided to exercise its option to rescind the R6.76-billion purchase of a 19.2-hectare property in the South Road Project it had won through a public bidding in June, 2015.

In a disclosure to the Philippine Stock Exchange, Filinvest said “the City of Cebu (has) failed to comply with several covenants, undertakings and obligations that it was required to fulfill more than a year ago.”

The firm said that it has given the city ample extensions “but it does not appear that the city will be able to comply within a foreseeable reasonable period of time” and Filinvest has thus decided to rescind the purchase.

“In a meeting held earlier today with the City, Mayor Tommy Osmeña said that he interposes no objection to the Joint Letter to Rescind sent by Filinvest and that he has tasked city officials and Filinvest representatives to work out the details and processes to consummate the rescission,” said Filinvest.

The firm said it remains committed to Cebu and is going full blast with its projects including joint ventures with Cebu City and Cebu province.

Among these is the ongoing development of the 40-hectare City di Mare, a joint venture with Cebu City located in SRP. The Filinvest group has existing and planned projects in Cebu covering residential, commercial, hospitality and office building projects worth over R20 billion in investments.

Filinvest had intended to develop the 19.2-hectare lot to complement the ongoing 40hectare development.

It was supposed to be developed and owned by Filinvest Land, the residential property arm of the Filinvest Group, together with its office development subsidiary, Cyberzone Properties, Inc. (CPI), its Central Business District affiliate, Filinvest Alabang, Inc. (FAI), and other possible strategic partners.