Vol. XXII, No. 76 [ BusinessWorld Online ]
Monday, November 10, 2008 | MANILA, PHILIPPINES
THE BASES Conversion and Development Authority (BCDA) will bid out more than 30 hectares of military lots in South Bonifacio, Taguig City by the middle of next year.
The state agency is confident that a timely asset disposition, value-boosting master-planning of the area and the attractiveness of the lots and other nearby BCDA properties would help it weather the negative speculation surrounding the local realty market.
BCDA Vice-President Aileen R. Zosa estimated the raw land value of the lots at P20,000 per square meter, or P6.16 billion for the entire property.
Despite the uncertainty posed by the financial crisis in the US and Europe, BCDA is optimistic about land sales. "Usually in a crisis there is a flight to quality. Probably, developers are dropping acquisition plans for less [valuable] property," she said.
The Joint United States Military Assistance Group (JUSMAG) property is near Forbes Park and stretches along Lawton Ave. "The Supreme Court issued a favorable ruling [last year] wherein the government can reclaim ownership of the JUSMAG property. The titles of Southside Home Association, Inc. has been canceled... and the BCDA has obtained the titles," Ms. Zosa told reporters last week.
In the meantime, negotiations for the relocation of military offices and residences there have begun, while the bidding for the land’s master-planning will be opened within the month, she said. The winning bidder for the lots would have to shoulder the relocation costs, Ms. Zosa said.
"When there is a masterplan, the values go up," she said in Filipino. "We are not just master-planning JUSMAG. The lots near it are our properties too. We will be planning this as Bonifacio South," she added. Ms. Zosa noted that they expect to have a master plan by March or April and will be ready to sell it by the middle of next year.
The BCDA is eyeing the widening of Lawton Ave. and the allocation of spaces for noncommercial buildings such as cultural centers and government offices as part of the master plan.
Meanwhile, bidding for an eight-hectare property also in Taguig has been pushed back in consideration of developers’ request for more time.
"The developers have requested us to give them more time, at least a month, to let the market settle first, to let the panic settle down. [But] the developers are still interested despite the financial crisis," Ms. Zosa said, identifying Ayala Land, Inc., Megaworld Corp., Robinsons Land and Shimao Group as among the potential bidders. The raw lots lie east of 8th Ave. in North Bonifacio and cost P33,000 per square meter or a total of P2.77 billion.
Ms. Zosa also said some proposed projects in Bonifacio Global City, also in Taguig, might not proceed next year. "Those who have started have committed that they would finish the projects," she added. But about 23 projects are still at the proposal stage and the developers may pull out. — Jessica Anne D. Hermosa
