Balai Ni Fruitas Inc.’s board of directors approved the acquisition of land, building and improvements on a P111.3-million property in Quezon City, the company said on Wednesday.
In a disclosure to the stock market, the company said the 484-square-meter (sq.m.) property will be used as a warehouse and commissary to expand its distribution channels, with part of the funding coming from the proceeds of its initial public offering (IPO).
“[Balai Ni Fruitas] continues to expand its distribution channels through setting up new Balai Pandesal stores, product placements in other Fruitas Holdings, Inc. community stores, and third-party partnerships,” the company said.
The transacting parties executed a deed of absolute sale of assets for a total consideration of P111.3 million, which the company said will be paid through a bank loan of P28.4 million, cash payment from IPO proceeds, which are allocated for commissary setup, and internal cash.
“The consideration shall be funded by approximately 25% debt and 75% cash,” the company said.
The property, which will be acquired from Lush Properties, Inc., is a 484 sq.m. land with a 288 sq.m. building and improvements. It is located in N. Domingo St., Quezon City.
Balai tapped Tan-Gatue Appraisal Associates, Inc. as the third-party property appraiser, it will assess the fair market value of the location and set the price at 90% of the appraised value.
On Wednesday, shares in Balai fell by 4.84% or 3 centavos to close at P0.59 apiece. — Adrian H. Halili