Chinese-Filipino businessman Lester Yu’s Balai Ni Fruitas Inc. is set to expand the capacity of the company’s popular Balai Pandesal brand.
According to a recent filing with the stock exchange, the company is acquiring a new property in Quezon City for P111.3 million, which will serve as a commissary and warehouse.
The move comes as Balai Pandesal continues to grow in popularity, with an increasing demand for its products.
The acquisition will be funded by 25 percent debt and 75 percent cash, with part of it coming from initial public offering proceeds and the balance from internal cash.
Balai Ni Fruitas is also looking to expand its overall capacity to meet the increasing demand by setting up new Balai Pandesal stores, product placements in other Fruitas Holdings community stores, and third-party partnerships.
The acquisition was made from Lush Properties Inc., and the property, which is located at N. Domingo, comprises of land with building and improvements measuring 484 square meters.
Balai Ni Fruitas has commissioned Tan-Gatue Appraisal Associates to assess the fair market value of the property, and the acquisition price was set at 90 percent of the appraised value.
Balai Ni Fruitas Inc. is a 75 percent-owned subsidiary of Yu’s Fruitas Holdings Inc.