The Gotianun-led Filinvest consortium has backed out of a deal to buy a 19.2-hectare reclaimed property from Cebu City.
In a disclosure to the Phiippine Stock Exchange on Monday, Filinvest Land Inc. said the consortium had decided to exercise its option to rescind its purchase of the property – located in the eastern coast of Cebu City called the South Road Properties (SRP) – that was won through a public bidding in June 2015.
The Filinvest group said the City of Cebu had failed to comply with several covenants, undertakings and obligations that it was supposed to deliver more than a year ago.
Filinvest group added that it had given the city ample extension but did not appear that it would be able to comply within a foreseeable reasonable period of time.
The group also reported that the new mayor of Cebu City, Tommy Osmena, had no objection to the group’s decision to rescind the deal. The mayor has tasked officials and representatives to work out the details and processes to flesh out the rescission.
Nonetheless, Filinvest expressed “continued commitment to Cebu.”
“The company 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 likewise located in SRP,” the group said.
“Currently, 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.