Thursday, September 17, 2009 | MANILA, PHILIPPINES [ BusinessWorld Online ]
MEGAWORLD CORP. has been proclaimed the winning bidder for the 8.38-hectare military property dubbed North Bonifacio in Taguig, after documents hurdled the final verification process.
The Bases Conversion and Development Authority (BCDA) said in a statement yesterday that contract signing would push through in October after another state agency approves the draft joint venture (JV) agreement.
Analysts hailed the development, saying that clinching North Bonifacio would strengthen Megaworld’s presence in the area and bring in increased revenue from reservation sales.
The Andrew L. Tan-led developer’s final bid of P3.1511 billion had been declared as higher than that of rival Robinsons Land Corp. The amount, revised to reflect present values, will consist of a P1.062-billion upfront cash payment and at least P306.616 million in secured revenues payable every year for 12 years.
"Megaworld was declared the winning private proponent for the joint venture development of the North Bonifacio Lots after it passed the post-qualification stage," the BCDA said.
"The signing of the joint venture agreement for the project is scheduled on Oct. 8, 2009, following approval by the Office of the Government Corporate Counsel of the draft JV Contract," it said.
Megaworld confirmed this in a disclosure to the Philippine Stock Exchange yesterday, noting further that the lots are "close to a school zone composed of the British, Japanese and American international school and various local schools."
Earlier, the BCDA bared Megaworld’s plans to use the property mostly for residential buildings with some commercial spaces.
Megaworld reiterated in the disclosure that it would invest at least P15.6 billion in the next two decades to develop the lots.
Paul D. Balaoing of PCCI Securities Brokers Corp. said: "Most of [Megaworld’s] developments are in the Fort Bonifacio area so it will benefit from this. The site will complement [the McKinley Hill project], for instance."
"They already have an idea of how to go through development in that area — the equipment needed, the traffic, the property values — so it will mean minimal cost for [Megaworld]," Mr. Balaoing said.
Megaworld, he added, has "enough cash."
"Investors shouldn’t be concerned. Dividends will probably be the same in the short-term but in terms of growth of the company and valuation of its stock, the market will benefit," Mr. Balaoing said.
Eunika B. Maloles of 2TradeAsia.com echoed this, saying: "As long as the projects keep coming and Megaworld is in the position to finance them, then it’s a good development."
Megaworld shares closed at P1.50 apiece yesterday, unchanged from the previous day. — Jessica Anne D. Hermosa
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