Filinvest Land, Inc. (FLI) is investing P1.16 billion to buy out its partner in Cyberzone Properties Inc. (CPI) and Filinvest Africa-Israel Properties Inc. (FAPI).

In a disclosure to the Philippine Stock Exchange (PSE) Monday, the firm said it is acquiring the 40 percent interest of Africa-Israel Properties (Philippines), Inc. in CPI as well as the 40 percent interest of Africa-Israel Investments (Phils.), Inc. in FAPI for P780 million and P383.2 million, respectively.

FLI said the sale is subject to the final agreement of the terms and conditions by the parties and conditioned, among others, on the Sellers’ delivery to FLI of certain required documents for closing.

FLI presently owns 60 percent of CPI and FAPI.

The approved acquisition price for the FAPI shares was computed at company’s book value per share while CPI share price was computed at a premium of 8.79 percent over the company’s book value as of September 30, 2009.

FLI said the sale by Africa-Israel of its interests in the two companies is part of the group’s global portfolio rebalancing and consolidation activity.

The Africa-Israel Group invests internationally in equities, fixed income, foreign exchange, commodities, alternative investments, real estate and private equity.

“The acquisition of Africa-Israel’s interests will enable FLI to consolidate its share in the strong and stable recurring revenue streams from the two companies as well as provide incremental development potential to FLI’s existing revenue streams,” FLI said.

FLI is planning to raise P3 billion through the additional float of fixed-rate five-year bonds, targeted for issuance within the first quarter of 2010 to additionally finance its capital requirements in 2010 and 2011.

The bonds are still subject to the approval of the Securities and Exchange Commission (SEC).

The planned issuance follows the FLI’s recent highly successful P5 billion bond float. On November 19, FLI issued P500 million in 3-year bonds at a fixed interest rate of 7.5269 percent and P2.5 billion in 5-year bonds at 8.4615 percent, inclusive of the full exercise of the P2 billion over-subscription option.

The issue was three times oversubscribed and was rated PRS Aaa by The Philippine Rating Services Corporation (Philratings).