Lester Yu and staff in a Balai ni Fruitas store
MANILA -Businessman Lester Yu’s listed bakery and restaurant company Balai Ni Fruitas is expanding its commissary business in line with an earlier announced reallocation of initial public offering (IPO) proceeds.
The company said in a stock exchange filing on Wednesday it would acquire a nearly 500-square meter property in Quezon City from Yu’s holding company, Lush Properties Inc., for P111.3 million.
“The property shall serve as new commissary and warehouse of Balai to expand capacity to serve increasing demand,” Balai said in the filing.
It added the property was valued by third-party appraiser Tan-Gatue Appraisal Associates Inc. at 90 percent of its value.
“Balai continues to expand its distribution channels through setting up new Balai Pandesal stores, product placements in other Fruitas Holdings community stores and third-party partnerships,” the company said.
“Balai eyes to enlarge its overall capacity to meet the increasing demand through the acquisition of the property which will be used as a warehouse and commissary,” it added.
The property acquisition would be funded by a combination of 25-percent debt and 75-percent cash, the disclosure read.
Earlier this year, Balai said it would reallocate proceeds from the IPO and raise investments for its commissary segment from P20 million to P60 million. The additional amount came from its store expansion budget.
Balai is a subsidiary of Yu’s Fruitas Holdings, which owns Sabroso Lechon and De Original Jamaican Pattie Shop and Juice Bar, among other food concepts.
The company earlier revealed a target to grow Balai Pandesal to 200 branches by 2026.
Balai had said net income from January to September last year reached P23.2 million, up 900 percent, while revenues jumped 164 percent to P234.1 million. INQ
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