Vol. XXI, No. 190 [ Business World Online ]
Tuesday, April 29, 2008 | MANILA, PHILIPPINES
THE BASES Conversion and Development Authority (BCDA) has sold a 1.2-hectare prime property in Taguig to a local real estate consortium, which could lead to higher land values in the area.
The BCDA, which oversees the sale and development of former military lands, yesterday said it had awarded the lot to the Net Group for P2 billion.
The land, which was sold after two failed biddings, may be developed for commercial, residential, recreational and institutional uses, it said in a statement.
The agency said the lot — the size of about three football fields — had been sold to the winning bidder at P168,889 per square meter for a total of a little over P2 billion.
The price was higher than the BCDA’s minimum price of P160,000 per square meter, or P1.925 billion, the BCDA said in a statement.
The property is located along 5th Avenue across The Fort and is within a special economic zone, which entitles the developer to incentives.
It is adjacent to the West Super Block, which will house the new building of the Philippine Stock Exchange, the six-star Shangri-La Hotel and the high-end residential condominiums of Shangri-La and Ayala Land.
Aileen Zosa, BCDA vice-president for business development, said sale means more revenues for the government and will enhance property values in the Bonifacio Global City.
The Net Group, a consortium of Filipino companies, had signed a joint venture with the American real estate firm Donald Trump Group, but the partnership did not proceed due to delays.
The Net Group is the office developer in the Global City with a 100% leased portfolio that includes Net One Center, Net Square, Net Cube, Net Quad and Net Plaza.
The BCDA board approved the sale through a board resolution passed on April 23. It earlier said it had generated P38.3 billion from its asset disposition program as of October.
It said 80% of the total or P30.36 billion came from Fort Bonifacio, P4.78 billion from leases and joint ventures, P1.9 billion from sales, and P1.245 billion from asset securitization.
From 2006 to 2007, 52 projects were completed, among them Serendra, Forbeswood Heights, Kensington, Bellagio and Fairways; Net Square, Hanjin Philippines and the Singapore Chancery. Also included are retail and office developments such as Bonifacio High Street.
Bonifacio Global City boasts of a central location that is a few minutes away from the Makati central business district, the Ninoy Aquino International Airport Terminal 3, and the Ortigas area. — B.S. Sto. Domingo
_____________________________________________________________________
