Filinvest turns over P134M to Cebu City

Last check payment for 10-hectare lot at South Road Properties

Filinvest Land Inc. yesterday paid  its last installment to to the Cebu City government  for  the purchase of a 10.6-hectare lot  in the South Road Properties (SRP).

The  P134-million check was handed  by Filinvest representatives to  City Treasurer Diwa Cuevas, City Accountant Mark Salomon and City Attorney Jerone Castillo at  the City Hall.

“We received the amount of P134 million net. However, the P7-million withholding tax is still under protest,” said Cuevas as City Hall officials believe the property is exempt from the two percent withholding tax.

Allan Alfon, Filinvest Visayas area general manager, led the turnover of the payment yesterday.

In a press statement, Filinvest said the company has completed the purchase.

“Filinvest is happy to have lived up to its commitment with Cebu City. This partnership will continue to flourish even after the payment for Pond F has been fully delivered as we work toward realizing our vision of making City di Mare the lifestyle capital of Cebu,” said Tristan Las Marias, Filinvest vice president for the Visayas and Mindanao.

Filinvest is developing Pond F as Il Corso, a lifestyle strip and shopping destination for  the AB and C markets. The vision is to make it a hub for families, shoppers, business people and fitness enthusiasts.

Il Corso is part of City di Mare that includes the 40-hectare joint venture between Filinvest and Cebu City.

Filinvest officials  tried to turn over the check  representing  final payment for the SRP lot whose total worth is P1.79 billion   last Tuesday and Wednesday, but City Hall officials held off receiving it until they could reconcile records.

Cuevas said that based on city  records,  Filinvest still has to pay a   balance of P187,006.73 for the property.  City Hall expected payment of   P141.8 million but two percent was set aside by Filinvest as withholding tax to be remitted to the Bureau of Internal Revenue (BIR).

The city received the check payment with a reservation that it would protest the tax matter with the BIR.

“It’s due already. It will be disadvantageous to the city if we will not accept the payment,” said Salomon.

Cuevas said City Hall  will reiterate its request  for the balance to Filinvest.

The  last amortization covers the 10.6-hectare SRP lot purchased at P15,000 per square meter or close to P1.6 billion during the term of former mayor Tomas Osmeña.

Filinvest made  a down payment of P348 million in 2009 with a  balance  payable within six years, ending this year.