Filinvest backs out of P6.76-B Cebu project

The Gotianun-led Filinvest consortium has backed out of a P6.76-billion deal to buy a 19.2-hectare reclaimed property from Cebu City, citing the local government unit’s failure to deliver its end of the bargain.

In a disclosure to the Philippine Stock Exchange on Monday, Filinvest Land Inc. (FLI) said the consortium had decided to exercise its option to rescind its purchase of the property—on 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.

The group also reported that the new mayor of Cebu City, Tommy Osmeña, had no objection to the decision to rescind the deal.

Nonetheless, Filinvest expressed “continued commitment to Cebu.”

The 19.2-hectare property in SRP was supposed to be developed and owned by FLI together with its wholly owned subsidiary Cyberzone Properties Inc., affiliate Filinvest Alabang Inc. and other strategic partners or investors. This was originally meant to complement its “City di Mare” project.

Other big property groups are likewise supposed to develop new areas in Cebu’s SRP. SM and Ayala groups separately won a 26-hectare reclaimed land in the area.