[ad_1]
Leading food and beverage kiosk operator Fruitas Holdings Inc. seeks to secure its business for the future by reallocating part of the proceeds from its initial public offering (IPO) to invest in real estate assets deemed vital to its operations.
In a disclosure to the Philippine Stock Exchange on Monday, Fruitas said its board had approved the reallocation of funds from the IPO to cover the acquisition of its buko water station and its new headquarters.
According to the disclosure, P145 million was reallocated for the acquisition of the site of its new headquarters, which measures more than 900 square meters with a five-story building and a net area of more than 2,000 square meters, located in Sta. Mesa, Manila.
An additional 20 million pesos have been allocated to the commissary expansion to cover the acquisition of the 1,328-square-meter site of the Buko water commissary in Quezon City, which is currently under lease.
The final terms of the acquisition of these properties will be subject to negotiation, the statement said. The deals are expected to be executed no earlier than mid-October.
The objective of these property acquisitions is “to secure ownership, and therefore long-term use, of assets that are vital to the future operations of the group.”
“Given the current underperforming environment, Fruitas is also investing its excess liquidity in assets that can provide higher returns, including potential long-term capital appreciation. The measure will result in savings in the rental costs of the Buko water station, ”said the company.
“Certain back-office operations will also be consolidated at the new headquarters and tenant rental income will be generated from the potential excess space,” he added.
Fruitas raised more than P1 billion from its debut on the stock market last year. It is now valued by the stock market at around P2.58 billion.
Read next
EDITOR’S SELECTION
MOST READ
Subscribe to INQUIRER PLUS to get access to The Philippine Daily Inquirer and more than 70 other titles, share up to 5 gadgets, listen to the news, download from 4am and share articles on social media. Call 896 6000.
For comments, complaints or inquiries, please contact us.
[ad_2]
