THE board of Yuchengco-led Rizal Commercial Banking Corp. (RCBC) has approved the sale of its real estate property assets to Filinvest Land Inc.
In its disclosure to the Philippine Stock Exchange, RCBC said It is selling to FLI all of the bank’s shares in Niyog Property Holdings Inc. (NPHI). FLI will conduct a due diligence on the assets held by NPHI.
NPHI owns certain parcels of land located in Bacoor, Cavite. It had a joint development agreement with FLI, in which the Gotianun-led property developer undertook to develop the land properties into an exclusive residential subdivision, which is now known as “Princeton Heights.”
“The disposition of the NPHI shares is being made to convert to cash RCBC’s investment in NPHI and realize the gains arising from such sale, and to dispose of RCBC’s equity investment in NPHI in accordance with the requirement under the Manual of Regulations for Banks, within the exemption period granted by [the Bangko Sentral ng Pilipinas], which will expire after May 31, 2023,” RCBC said in its disclosure.
Niyog Property is a wholly-owned subsidiary of the RCBC and was incorporated on September 2005, with the purpose of purchasing, subscribing for or otherwise disposing real and personal property of every kind and description but not as an investment company.
“The consideration for the NPHI shares will be determined based on the value real properties which remains undeveloped, subject to the agreement of the parties, and the conduct and completion of FLI’s due diligence,” the bank said.