Vol. XXI, No. 228 [ BusinessWorld Online ]
Friday, June 20, 2008 | MANILA, PHILIPPINES
CEBU CITY — Despite the preference of foreign investors to expand in China, the city government is allotting space at the South Road Properties for the expansion of some multinational locators in the two Mactan economic zones.
Joel Mari S. Yu, managing director of the Cebu Investment Promotions Center (CIPC), said the city government will not touch for planned real estate development about 40 hectares of the 300-ha South Road Properties (SRP) and save these for the Mactan economic zone locators.
"We keep hearing that some of these companies plan to expand. The SRP was conceived to accommodate the expansion of the companies operating at MEZ 1 and 2. That’s why Japan agreed to lend us the money. So we will not touch those 40 hectares," Mr. Yu said.
The two Mactan economic zones are fully occupied.
The 150-hectare MEZ 1, one of the government-owned industrial enclaves in the country, has over 100 locators led by TMX Philippines, Inc. while the 63-hectare MEZ 2, which was developed by Aboitizland, Inc., has over 40 locators like Lexmark International Philippines.
The Cebu city government secured a ¥12-billion loan from the Japan Bank for International Cooperation to reclaim 300 hectares and develop this into the South Road Properties.
The property has been declared as a special economic zone and is designed for mixed land use that can accommodate manufacturing, commercial, tourism, information technology, and other service enterprises.
The CIPC, exclusive marketing arm of the Cebu city government for the South Road Properties, is currently negotiating with Filinvest Land, Inc., which has proposed to develop close to 50 hectares at the South Road Properties.
Filinvest has proposed to purchase a 13-hectare lot worth about P2 billion and develop a 35-hectare lot jointly with the city government.
Other developers have also expressed interest to acquire lots at the South Road Properties, although they have yet to firm up their proposals. — Marites S. Villamor
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