LISTED property developer Filinvest Land, Inc. (FLI) is acquiring 100% of condotel operator FORA Services, Inc. (FOSI) as part of bolstering its portfolio and long-term growth plans.
FLI’s executive committee approved the acquisition of FOSI from its subsidiary Filinvest Hotel Corp. (FHC) for P400,000, the Gotianun-led property developer said in a regulatory filing on Monday.
“The acquisition of FOSI would involve the addition of the first-ever Securities and Exchange Commission-registered condotel business model into the diverse portfolio of FLI. With this, FLI can capitalize on the novelty and potential of the condotel business and position itself for long-term growth,” FLI said.
“The acquisition also creates synergies by leveraging on the experiences and resources of both FLI and FOSI. FLI can leverage on its expertise on real estate development and management to enhance the quality and efficiency of FOSI’s condotel operations which can ultimately lead to cost savings and improved profitability,” it added.
Incorporated in August 2018, FOSI is a domestic corporation engaged in operating and managing real estate projects and rendering hospitality-related services, particularly the Quest Hotel Tagaytay Project condotel project in Fora Rotunda Tagaytay.
FOSI is a registered issuer of 164 certificates of participation in the condotel project, which allows its holders to receive a payment of distributable participation interest annually and room use privilege.
FHC is a subsidiary of listed conglomerate Filinvest Development Corp. (FDC), which has business interests in real estate development and leasing, banking and financial services, hotel and resort management, power generation, and sugar milling.
On Monday, FLI shares were unchanged at 63 centavos apiece while FDC stocks rose by 1.11% or six centavos to P5.45 per share. — Revin Mikhael D. Ochave
