Filinvest Land Inc. (FLI), the property arm of the Gotianun family, said Monday it acquired 100 percent of FORA Services Inc. (FOSI) from subsidiary Filinvest Hospitality Corp. (FHC).
FLI said in a disclosure to the stock exchange its board approved the acquisition that would enable the company to expand into the condotel business.
The integration of FOSI into FLI’s portfolio represents a strategic move to leverage the emerging condotel market.
“With this, FLI can capitalize on the novelty and potential of the condotel business and position itself for long-term growth. The acquisition also creates synergies by leveraging on the experiences and resources of both FLI and FOSI,” FLI said.
FLI said it could 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.
FOSI was incorporated on Aug. 24, 2018, as a domestic corporation primarily engaged in the business of operating and managing real estate projects and rendering hospitality-related services, particularly, the Quest Hotel Tagaytay project in Fora Rotunda Tagaytay.
It is a registered issuer of 164 certificates of participation in the project, which allows its holders to receive a payment of distributable participation interest annually and room use privilege.
The transaction will be settled with a full cash payment upon the signing of the deed of assignment of shares.
The shares were acquired from FHC, a subsidiary of Filinvest Development Corp., which is the parent company of FLI.
FLI is primarily into residential, office and mall development.
The share price of FLI closed unchanged at P0.63 on Monday.
