Publicly-listed niche property developer Haus Talk Inc. expects to generate P9 billion in sales from the developoment of a P1 billion property it has acquired from Liberty Flour Mills Inc.
In a disclosure to the Philippine Stock Exchange, Haus Talk said its Board of Directors has approved the acquisition from Liberty Flour Mills, Inc. of eight contiguous parcels of land in Angono and Teresa, Rizal with a total area of 37 hectares or 372,201 square meters.
“The Property was previously used as a pig farm and currently classified as agricultural. HTI shall be applying for the reclassification of the property to ‘residential use’ or for ‘non-agricultural use’ before the pertinent local government units and/or the Department of Agrarian Reform, through its provincial or regional offices,” the firm said.
It noted that, “This transaction expands HTI's land portfolio and reinforces its vision of becoming the most valued and recognized property developer that provides ‘value for money’ residential real estate projects by investing in prime land locations.”
The roperty is envisioned to be HTI’s first mixed-use development project in the Rizal area, and is expected to bring in revenues of approximately P9 Billion. Land development for the area is expected to commence by the fourth quarter of 2025.
Haus Talk said the consideration was agreed upon after negotiation between the parties taking into consideration an independent property valuation conducted by the seller.
Payment will start with an earnest money of P10 million upon signing of the Memorandum of Agreement and five installment payments in a span of two years. The installment payments shall be made upon compliance with certain milestones.
HTI shall source its funds from internally generated funds and bank loans on an approximately 30-70 split.
It will secure a standby letter of credit from Security Bank Corporation, China Banking Corporation or other banks acceptable to the seller amounting to P758.22 million to guarantee the payment of the purchase price of the Property valid for 25 months from the First Closing Date as stated on the Memorandum of Agreement.
For its part, LFM said in a separate disclosure that, "The purpose of the Property’s sale is to expand and diversify the Corporation’s investment portfolio and invest in new food related businesses."
"LFM will incur a one-time gain, which will provide it with additional liquidity in its operations, expanding its investment portfolio, and diversification into other food related ventures and other related business," it added.