Filinvest Land Inc., the property arm of the Gotianun Group, has entered into a property-for-share swap agreement with Filinvest REIT, the group’s listed real estate investment trust that trades under the symbol FILRT.
FLI will secure 1.63 billion new common shares of FILRT, each priced at P3.85, a 30 premium over the 30-day volume weighted average price of P2.94. FLI will get the shares, with a total value of P6.26 billion, in exchange for its entire stake Festival Mall-Main Mall in Alabang, a prime commercial property.
This tax-free transaction positions FILRT to enhance its asset portfolio with a high-value retail space, while FLI strengthens its capital position by converting the property into liquid shares. The move is expected to bolster FILRT’s long-term growth strategy and expand its income-generating assets.
Upon approval by the Securities and Exchange Commission (SEC), FLI and FILRT will formalize the arrangement with a lease agreement, ensuring FLI retains operational control of the mall. This deal reflects an innovative approach to capital raising and portfolio optimization, offering both parties a chance to capitalize on market conditions and create sustained value for shareholders
