Gotianun ditches 19-hectare SRP lot purchase
The Gotianun-led Filinvest group has pulled out of an agreement to acquire a 19.2 hectare reclaimed land at South Road Properties in Cebu due to the city government’s failure to comply with its obligations under the deal.
In a stock exchange filing, FLI said it “decided to exercise its option to rescind its purchase of a 19.2 hectare property in SRP won through a public bidding in June 2015.”
“The City of Cebu failed to comply with several covenants, undertakings and obligations that it was required to fulfill more than a year ago,” FLI said.
SRP is a 300-hectare reclamation project of the city government, out of which 26 hectares had been won by SM Prime Holdings and Ayala Land Inc.
FLI said Cebu mayor Tommy Osmena had posed no objection to its decision to back out of the deal.
The Gotianun-led consortium was supposed to develop the property into a residential, office and retail complex, and complement its ongoing City di Mare project.
City di Mare is the group’s 50.4-hectare mixed-use development within the sprawling Cebu ecozone, with residential, lifestyle, and retail components.
Nevertheless, FLI said it remains committed to the Cebu property market as it goes full blast on the development of the 40-hectare City di Mare, a joint venture with Cebu City.
“The Filinvest Group has existing and planned developments in Cebu covering residential, commercial, hospitality and office building projects with investment value of over P20 billion,” it said.