Here’s how kiosk operator Fruitas is future-proofing its business now | F&B Report

OCTOBER 27, 2022

Fruitas Holdings Inc., the company behind brands like Buko Loco, Juice Avenue and The Mango Farm, will reallocate a portion of its initial public offering (IPO) to invest in real estate. This is a decision expected to future-proof the business. The food and beverage kiosk operator will use its IPO funds to acquire the sites of its buko water commissary and its new headquarters.

“Given the current low-yield environment, Fruitas is also investing its excess liquidity in assets which can provide higher returns, including potential capital appreciation in the long run. The move will result in savings on lease expenses for the buko water commissary,” the company says.

Based on its disclosure with the Philippine Stocks Exchange, P145 million will be allocated for its new headquarters in Sta. Mesa, Manila which features a five-story building and a net floor area of 2,000 square meters.

Another P20 million is set for the acquisition of its 1,328 square meter buko water commissary site in Quezon City. Agreements on Fruitas’ plan will be executed starting mid-October. The business move shall “secure ownership, and therefore the long-term use, of assets which are vital for the future operations of the group.”

“Certain back-office operations will also be consolidated in the new headquarters and rental income will be generated from tenants of potential excess space,” Fruitas added.

Over one billion pesos was raised in Fruitas’ stock market debut last year and the company is now valued at P2.58 billion. The group also entered the grilled chicken and soy products business last March, introduced its new store concept Babot’s Farm and one of its recent acquisitions Heat Stroke Grill. The 18-year old company has opened over 1,068 stores in the Philippines with over 20 brands under their name.

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