Liberty Flour Mills to sell Makati asset to property unit

MANILA, Philippines — Listed flour manufacturer Liberty Flour Mills Inc. (LFMI) is set to unload its real estate asset in Makati City to its property unit LFM Properties Corp.

In a disclosure to the Philippine Stock Exchange (PSE) yesterday, LFMI said its board has given the go signal to enter and execute a memorandum of understanding (MOU) with LFM Properties for the potential sale of Liberty Building and the 1,009-square meter parcel of land where the Liberty Building is constructed.

LFMI is the registered owner of the property, which is located at 835 A. Arnaiz Avenue, Makati City.

The sale will be subject to the determination of the purchase price, which will be based on the fairness opinion issued by an independent third-party financial adviser.

“Given the time needed for the preparation of the fairness opinion and its study upon issuance, the company and LPC aim to enter and execute a deed of sale in the first quarter of 2023 if a favorable recommendation/opinion is secured from the independent-third party financial adviser,” LFMI said.

If LFM Properties will take the property for share swap route, both companies commit and accept to issue shares in compliance with the 20 percent public float policy of the PSE and with all the necessary approval from the relevant regulators.

LFM Properties listed by way of introduction last Nov. 9.

It is a real estate company incorporated with the SEC in 1995 under its original name, Alfaro Land Holdings Corp.

In 2005, the SEC approved a merger of LFM Land Corp. and Valero Land Corp.

In the said merger, the entire assets and liabilities of LFM Land Corp. and Valero Land Corp. were transferred to and absorbed by LFM Properties.

The company, according to its registration statement, is engaged in real estate, including managing, developing and selling land with or without buildings or improvements.

In the same disclosure, LFMI said its board approved the declaration of cash dividends of three percent of the subscribed capital, equivalent to P0.30 apiece with record date of Dec. 16 and payable on Dec. 28.