Vol. XXII, No. 131 [ BusinessWorld Online ]
Wednesday, February 4, 2009 | MANILA, PHILIPPINES
CEBU CITY — Filinvest Land, Inc. signed a landmark deal yesterday with the Cebu City government to develop 50 hectares of a 300-hectare local government-owned prime property that is expected to become the centerpiece of the city’s development and its single biggest growth driver.
As soon as it gets all permits, the property company will simultaneously develop two 10-hectare lots within the reclaimed South Road Properties. Filinvest Land expects to break ground before the year ends, said Joel Mari S. Yu, managing director of the Cebu Investment Promotions Center.
Filinvest is buying the 10-hectare Pond F, valued at around P1.5 billion and considered the most valuable piece because it is located on the seafront. Filinvest will also develop under a joint venture with Cebu City a 40-hectare lot across Pond F. Up to P25 billion will be invested in the two properties.
"[Filinvest] will complete a master plan first and immediately after the permits are issued, they will start the development of Pond F into a boardwalk-type of commercial strip with restaurants, hotels and entertainment outlets," Mr. Yu said.
At the same time, the company will implement the first phase of the joint venture development of the 40-hectare lot. The property will host residential condominiums and retirement villages.
"The commitment is that they will build condominium buildings with a minimum floor area of 17,500 square meters per hectare or a floor-to-area ratio of 1.75," Mr. Yu said.
For the first phase involving 10 hectares, a total floor area of 175,000 square meters will be built.
On Monday, the Cebu City Council authorized the acting mayor to sign the agreement with Filinvest.
The developer will have 30 days within which to pay a downpayment of P348 million, which will be credited against the P1.5-billion price for the 10-hectare Pond F.
In return, the local government will release a corresponding portion of the property. Filinvest Land will pay P1.5 billion over three years.
The South Road Properties is envisioned to become the single biggest growth driver in Cebu. The local government reclaimed the land with the help of the Japan Bank of International Cooperation, which extended a 12-billion yen loan through Land Bank of the Philippines.
The facility is registered as a special economic zone and was designed for mixed land use that can accommodate light manufacturing, commercial, tourism, information technology and other service enterprises.
The South Road Properties is about five minutes away from the central business district in downtown Cebu City, about 15 minutes from the Cebu International Port and less than an hour away from the Mactan Cebu International Airport.
It can be accessed through the Cebu South Coastal Road, which includes a viaduct and a tunnel that will connect to Sergio Osmeña Blvd., formerly known as McArthur Blvd., at the Cebu Port and North Reclamation Area.
The road is already open to motorists while the tunnel, about 20 feet below sea level, is expected to be completed in June. — Marites S. Villamor
______________________________________________________________