Posted on August 23, 2012 10:48:04 PM
[ BusinessWorld Online ]
Baesa Redevelopment Corp., a 60%-owned
subsidiary of listed Philippine Tobacco Flue-Curing and Redrying Corp. (PTFCRC)
is claiming over P37.620 million in damages after Robinsons terminated its
lease agreement at the so-called Baesa Town Center, a disclosure yesterday
showed.
The case has been filed with the
Quezon City Regional Trial Court, it said.
“In particular, Robinsons Supermarket
violated the no-termination clause in its lease agreement with Baesa
Redevelopment,” it claimed.
The amount sought comprises of
compensatory and exemplary damages, as well as attorney’s fees, suit costs, and
litigation expenses.
“The filing of the subject case is
expected to improve the financial standing of [PTFCRC],” the disclosure stated
further.
In 2009, Baesa Redevelopment had
completed the construction of mall, a 7,000-square-meter commercial property
located on a 2.2-hectare lot on Quirino Highway, Quezon City.
The commercial complex had signed on
major anchors such as Robinsons Supermarket and Handyman, but since its
opening, business had not picked up as expected, PTFCRC had said.
This poor showing was mostly caused by
Robinsons Supermarket’s pre-termination of its lease agreement in August last
year, the firm alleged.
As a result, Baesa Town Center’s
occupancy rate has only settled at 69% as of end-September last year.
Representatives of Robinsons
Supermarket were not immediately available for comment.
Robinsons Supermarket is a unit of
Robinsons Retail, which in turn forms part of Robinsons Land Corp., the listed
property arm of Gokongwei-led JG Summit Holdings, Inc.
PTFCRC, for its part, was incorporated
in 1951, consolidating its tobacco operations in Candon, Ilocos Sur in 1994.
However, the company phased out its tobacco business in 2002, citing incurred
losses due to declining export and domestic volumes and prices.
It has since leased out tobacco
facilities to third-party groups on short-term lease or tolling arrangements.
PTFCRC had been listed under the local
bourse’s Industrial (Food, Beverage, & Tobacco) sector until January this
year, when it was reclassified to the property sector following the change in
the firm’s principal business.
For the nine-month period ending May,
PTFCRC hiked its net income by 26.80% to P13.53 million versus P10.67 million
last year, as lower rental costs and general expenses offset the dip in
revenues.
Revenues, mostly from rental income
from the firm’s warehouses, fell by 3.15% to P63.75 million. PTFCRC shares were
last traded on Aug. 2 at P14.58 apiece. -- Franz Jonathan G. de la Fuente
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