FILINVEST Land Inc. has rescinded its purchase of a 19.2-hectare property at a reclaimed economic zone in Cebu City, saying the local government has failed to fulfill its obligations under the sale contract.
Cebu City Mayor Tomas Osmeña, who has planned to revoke the sale, posed no objection.
He held a press conference at the Cebu City Hall earlier Monday with a plan to return the P4.5 billion paid by the real estate firm.
In a statement, Filinvest said the mayor has tasked city officials and Filinvest representatives to work out the details and processes to consummate the rescission.
Filinvest also said "it has given the City ample extensions but it does not appear that the City will be able to comply within a foreseeable reasonable period of time."
The property is part of the 300-hectare South Road Properties (SRP), which is owned by the Cebu City Government.
The rescission of the sale would not affect Filinvest's 40-hectare City di Mare development, a joint venture with the Cebu City Government.
The 19-hectare lot, which Filinvest won for P6.7 billion, was among the properties auctioned off by the Cebu City government, under then mayor Michael Rama, in June 2015. A 26-hectare property went to a consortium of SM Prime Holdings Inc. and Ayala Land, Inc. for P10 billion.
Shortly after he won in the May 2016 elections, Osmeña vowed to revoke the sale of both properties. The mayor, who conceptualized the SRP, had consistently opposed the sale of the SRP lots by Rama, his former ally turned bitter rival.
In the same statement, Filinvest expressed its continued commitment to Cebu. The company said it is going full blast with its projects valued at over P20 billion in Cebu City. (MVI/SunStar Philippines)
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