Fruitas buys a P140-million Manila property as headquarters

FOOD AND BEVERAGE kiosks operator Fruitas Holdings, Inc. has bought a P140-million property in Manila City to be used as its new headquarters.

In a disclosure to the exchange Monday, the listed firm said it has acquired a 909.5-square meter parcel of lot in Ramon Magsaysay Blvd., Sta. Mesa, Manila.

“The acquisition of the property allows Fruitas to secure ownership, and therefore the long-term use, of (an) asset which is vital for the future operations of the group,” it said.

Fruitas is using a portion of the P820-million proceeds from its initial public offering (IPO) last year to pay for the property in cash. Some P40 million have been paid last week, while the balance may be paid until Dec. 15.

“Given the current low-yield environment, [the company decided to] invest in assets which can provide higher returns, consolidate certain back-office operations and also generate rental income from tenants of potential excess space,” it said.

“[I]n the long-run, we also expect the asset will have capital appreciation,” it added.

The property has a five-storey building with a net floor area of more than 2,000 square meters. It was bought by Fruitas from the Philippine Bible Society, Inc.

The company first announced its plan to buy a property for its new headquarters in September. It has allotted P145 million for the plan from the P165-million IPO proceeds it is reallocating.

The remainder of the reallocated funds, or P20 million, will go to its fund for commissary expansion. Fruitas is looking to buy the 1,328-square meter land, where its Quezon City buko water commissary is located.

In the first half of 2020, Fruitas booked an attributable net loss of P12.35 million, reversing its attributable net income of P51.97 million the same period last year. This is due to temporary store closures following the government’s lockdown protocols.

Fruitas shares closed at P1.35 apiece on Monday, down five centavos or 3.57% from the last session. — Denise A. Valdez

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Article and Photo originally posted by Business World last November 10, 2020, 12:04am.