Filinvest Development Corp. (FDC) is consolidating its Cebu hospitality assets under subsidiary Filinvest Hospitality Corp. (FHC) through a P2.4-billion property-for-shares swap as the conglomerate streamlines management of its hotel and tourism portfolio.

In a disclosure on Wednesday, the Gotianun Family-led FDC said its board approved the proposed transaction involving the transfer of parcels of land, including buildings and improvements, spanning about 64,999 square meters in Barrio Mactan, Lapu-Lapu City, Cebu.

The transaction will be implemented in two phases, with the corresponding property portions to be finalized by the management of FDC and FHC based on third-party appraisal valuations and subject to regulatory approvals.

Under the deal, FHC will issue to FDC a total of 24.01 million shares at an issue price of P100 each, for an aggregate value of P2.401 billion.

“The proposed property-for-share swap transaction, structured as a tax-free exchange, is intended to consolidate ownership of the Properties under FHC, a wholly owned subsidiary of FDC and the Group’s designated operating company for hospitality-related assets,” the company said.

FDC said the transfer is expected to “improve asset management efficiency and streamline oversight of the Group’s hospitality investments.”

“The transaction forms part of the Group’s internal reorganization and does not result in any change in beneficial ownership,” the company added.