LIBERTY Flour Mills Inc. (LFM) on Tuesday said it had completed the sale of the Liberty Building in Makati City to subsidiary LFM Properties Corp. (LPC).
In disclosures, the listed firms said that they had signed a deed of absolute sale on Monday after full payment was made.
“The sale of Liberty Building is to restructure its real estate portfolio and to focus more on the primary purpose of being a flour milling company and other related food business,” LFM said in its stock filing.
“LFM will incur a one-time gain and have more funds on flour milling and other related business,” it added.
LPC, for its part, said “the purchase of Liberty Building will add to LPC’s property portfolio and operating income of LPC.”
“The value of Liberty is expected to increase over time; hence giving LPC an appreciating asset,” it added, noting that the property was a rental-generating asset that would provide recurring income.
The sale of the eight-story building was approved by the boards of the two firms in March last year.
An independent third-party financial adviser was said to have advised that the fair price for Liberty Building would be 27 percent of the value of LFM’s total assets.
The terms of payment were a 22-percent initial deposit in April, with the remainder to be given in installments and fully paid on or before Nov. 30.
LFM’s share price fell by 50 centavos to close at P14 each on Tuesday.
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