FLI to pay downpayment for SRP lots this March 3

CEBU, Philippines - Filinvest Land Incorporated (FLI) will be paying the P348 million down payment to the city government on March 3 for the recently-awarded P25 billion project to develop a portion of the South Road Properties (SRP).

Tristan Las Marias, FLI vice president for the Visayas and Mindanao said, the expected down payment date is on March 3, or 30 days after the signing of the joint venture contract by both parties.

The P348 million down payment is for the outright purchase of 10.6 hectares worth P1.5 billion.

The balance will be paid in a span of three years.

Lawyers of FLI are in town to represent the company on discussions pertaining to actual surveys, titling, securing of foreshore rights and other administrative and government consents for the validity and enforceability of the outright purchase.

Assistant City Treasurer Emma Villarete said, they already have a Letter of Credit amounting to P250 million which will expire on March 4, 30 days after the February 3 signing.

“By that time we can already collect the initial down payment from the bank that issued the LC,” Villarete said.

FLI will then pay the balance to complete the P348 million down payment on the same day.

The initial P250 million LC was then a placed as a guarantee fund for their unsolicited proposal covering 10 percent of the total project price.

Villarete said the down payment is already enough to cover the first semi annual payment of the P6 billion-loan of the city from Japan in 1994.

The first part of the agreement is for the 40-hectare joint venture development, which assures the city an income of 10 percent gross sales of built up units or a guaranteed premium, whichever amount is higher.

FLI is the first buyer of the SRP in three years since its completion.

The city is already finalizing the Memorandum of Agreement (MOA) for the electricity provider, Visayan Electric Company (VECO). A Joint Venture Selection Committee (JVSC) is also to be formed to evaluate the proposal of Pilipinas Water.

Utilities have to be in place since FLI is set to start development in six months. — Ferliza C. Contratista/NLQ   (THE FREEMAN)