Fruitas Holdings Inc. (FHI, PSE: FRUIT) disclosed that its Board approved the re-allocation of proceeds from its initial public offering to cover the acquisition of the site of its buko water commissary and its new headquarters.
Additional P20 million has been allocated towards commissary expansion to cover the acquisition of the 1,328 square meter site of the buko water commissary in Quezon City, which is currently being leased. P145 million has been allocated to the acquisition of the site of its new headquarters, measuring more than 900 square meters with a 5-storey building and net floor area of more than 2,000 square meters, located in Sta. Mesa, Manila.
Final terms of the acquisition of these properties will be subject to negotiation. Agreements are expected to be executed not earlier than mid-October.
Fruitas noted that the objective of these property acquisitions is to secure ownership, and therefore the long-term use, of assets which are vital for the future operations of the Group. Given the current low-yield environment, Fruitas is also investing its excess liquidity in assets which can provide higher returns, including potential capital appreciation in the long run. The move will result in savings on lease expenses for the buko water commissary. Certain back-office operations will also be consolidated in the new headquarters and rental income will be generated from tenants of potential excess space.
Fruitas continues to re-open more stores as quarantine measures ease. Number of stores in operation have exceeded 600, the highest level since the imposition of various levels of quarantine across the country. The rollout of community stores under the Babot’s Farm and Soy & Bean brands continues with the newest Babot’s Farm store opened in Wilson St. corner P. Guevarra St., San Juan City. Fruitas has also started to offer frozen de Original Jamaican Patties in its community stores.