FLI holds titles for 2 hectares

Monday, March 30, 2009

CEBU CITY -- Speaking for the first time about the joint venture controversy, a Filinvest Land Inc. (FLI) official said they only have titles to a two-hectare portion of the South Road Properties (SRP), and not the entire 10.6-hectare Pond F that they purchased.

FLI officials, however, remain optimistic about their joint venture with the Cebu City Government and are confident that their project “will generate thousands of jobs and billions of pesos worth of business and other revenues both for the city and the Province of Cebu.”

Despite the Capitol officials’ attack on the joint venture agreement, FLI assured that the people of Cebu province, and not just the city, will be the primary beneficiaries of the deal.

Criticisms from the Capitol are seen as an offshoot of the conflict between the city and the province over another matter.

“We have faith in the business-friendly reputation of the local government and we are confident that the city and provincial officials will see the value of attracting investments during this economic slowdown as a means to pump the local economy,” said FLI vice president Tristan Las Marias.

In a press statement e-mailed to Sun.Star Cebu, Las Marias denied reports that the title covering 10.6 hectares of land has already been transferred to the name of FLI.

The titles for a two-hectare lot turned over by the Cebu City Government earlier this month is in exchange for the P348-million down payment of FLI, which supposedly allows them to get titles for up to 2.32 hectares of land.

Las Marias said FLI guarantees to pay a total of P1.5 billion to the city in the first three years.

The titles for the remaining 8.6 hectares of Pond F properties will be turned over to FLI on an installment basis or at two hectares per year, and only after it has turned over payment equivalent to the value of a two-hectare portion.

“We have received titles to only 20,000 square meters, which corresponds to the P348 million that was paid. Based on our P15,000-per-square-meter purchase price, the equivalent area to be turned over should have been 23,200 square meters,” said Las Marias.

He also pointed out that FLI purchased lots at the Pond F area for P15,000 per square meter, or P4,000 more than the approved minimum bid price of the Commission on Audit (COA).

Earlier, Mayor Tomas Osmeña said FLI officials are already worried and are affected by the Capitol officials’ attack on the joint venture between the city and the province.

FLI, he said, has built over 150,000 housing units across the country, and this is the first time that they are being accused of entering into an anomalous deal.

Governor Gwen Garcia and her brother, Representative Pablo John Garcia (Cebu, 3rd district), earlier said that officials of this city and FLI could be sued for plunder for the irregularities in the deal.

They also proposed a House inquiry to look into the details of the contract.

“We wish to highlight that the FLI deal is aboveboard, which is typical of any deal it undertakes…. Filinvest has paid the City of Cebu an initial payment of P348 Million. This amount, together with the balance of the P1.1 billion payments, plus the proceeds from the 40 hectares from the joint venture, will far exceed the approved price per square meter of COA for all the parcels involved,” Las Marias said.

He further said that FLI’s bid complied with all the Terms of Reference of the bidding for the joint venture to develop a 50.6 hectare portion of the SRP over a 20-year period.

The contract has an outright purchase component covering 10.6 hectares of beachfront lots, and the joint venture activities on the 40-hectare properties along the South Coastal Road and other interior lots.

Las Marias also said that FLI’s investment at the SRP will reach P25 billion for the entire duration of the 20-year joint venture contract.

FLI intends to build a landmark development on the 10 hectares, which it will develop to become an attraction to further enhance Cebu as a primary tourism destination in the country.

FLI is now working with international master planners and architects to finish the master plan and fast track the development of a 40-hectare mix-use and residential complexes, which they said, will enhance Cebu’s role as the educational, medical and trade center of the Visayas.

Las Marias said that with a reported asset of P53.2 billion and equity of P38 billion as of December 2007, FLI is still committed to pursue the SRP project despite the Capitol’s attacks.

“We wish to emphasize that FLI is a Cebuano company and its intention is to help its fellow Cebuanos by investing in the SRP and contributing to its development as a booming center for tourism, trade and commerce. FLI wants to give back to the Cebuanos by giving them job opportunities, more tax revenues, and quality developments that the Cebuanos can all be proud of,” he said. (LCR of Sun.Star Cebu)