Italpinas Development Corporation (IDC)has decided to buy out its partner Lanvin Natural Resources Corporation’s stake in the joint venture for the P1.8 billion expansion of IDC’s Batanas residential project.
In a disclosure to the Philippine Stock Exchange, Italpinas said it has executed a Buyout Agreement with Lanvin in exercise of its option to buyout the interests of Lanvin in the Joint Venture Agreement they entered into last June 23.
The purchase price for Lanvin’s stake will range from between P46.31 million and P58 million, depending on the date of payment, which shall not be beyond June 30, 2023.
Upon payment of the full purchase price, Lanvin will assign to IDC all its rights, title and interest in the Joint Venture covering Phase 2 of IDC’s Miramonti Project in Sto. Tomas, Batangas.
IDC earlier said it has entered into an unincorporated Joint Venture Agreement with Lanvin for the purpose of developing an area of 5,347 square meters into Phase 2 of its Miramonti Green residences Project.
The master plan for IDC’s Miramonti Project consists of a Phase 1 and a Phase 2. Lanvin is contributing a parcel of land with an area of 5,347 square meters, as well as consultancy services.
IDC will develop the area into a condominium project, specifically Phase 2 of Miramonti Green Residences. Total project cost is approximately P1.8 billion.
Post development, and once fully sold, IDC expects net profits in the range of P850 million to P940 million from the project.
Lanvin was supposed to be entitled to sufficient number of units corresponding in value to P58 million valued at pre-selling price.
IDC was to get the remaining units in the project and has the option to buyout Lanvin within a period of one year from the issuance of the License to Sell.