FLI misses P245 million payment for SRP lots

CEBU, Philippines - Filinvest Land Inc. has not paid Cebu City its fourth installment payment amounting to P245.2 million for the purchase of a 10-hectare lot in the South Road Properties. The amount was due last March 5.

Cebu City assistant treasurer Emma Villarete said City Treasurer Ofelia Oliva already sent letters to Tristan las Marias, FLI first vice president for Visayas and Mindanao, reminding him that his company failed to pay the P245,200,000 representing the fourth installment payment.

They have not received any communication from FLI officials. Las Marias was also not available for comment yesterday.

Cebu City, through former mayor Tomas Osmeña, entered into a joint venture contract with FLI in 2009 and the agreement was that FLI will purchase the 10-hectare lot at P1.5 billion to be paid in staggered basis every year until the cost will be fully paid.

It was also agreed that another 40 hectares will be subject to a joint venture agreement wherein the city is entitled to receive 10 percent of the total gross sales of FLI from its development projects.

Oliva already demanded from FLI the initial payment of the 10 percent shares of the city from the pre-sales of FLI of their condominium projects, which are constructed within the 40-hectare area.

 “I don’t think there is a problem with Filinvest, but I don’t know the facts,” Osmeña said.

While the 10-hectare lot has already been purchased by FLI, it is also the target of the court sheriff to garnish in order to satisfy the city’s obligation of P133 million to the heirs of Rev. Fr. Vicente Rallos whose 4,654-square-meter lot in Barangay Sambag 2 was made a public road.

The heirs of the late priest asked to be paid P44 million for the lot but Mayor Michael Rama refused to pay.

In a previous interview, Las Marias told the reporters that the first batch of commercial shops and the promenade walk will be available for public use by the third quarter of this year.

The FLI is the first developer to buy lots at the SRP, which the city government developed in 1994 using funds borrowed from the Japanese government. 

FLI announced that it will invest about P80 billion to construct several high-rise and medium-rise condominiums, a commercial center, a medical and retirement facility and office building in their lot.

Villarete said aside from the annual installment payment they were expecting that the FLI will already start giving the city about P600 million this month as its share in the pre-sales of its condominium projects.(FREEMAN)