BY IRMA ISIP
[ Malaya.com.ph ] September 7, 2010
The Bases Conversion and Development Authority (BCDA) said six real estate developers have expressed interest in challenging SM Land Inc.’s (SMLI’s) unsolicited proposal to develop the 33.1-hectare property in Bonifacio South that the BCDA has subjected to competitive "Swiss" challenge.
Aileen R. Soza, BCDA executive vice president and spokesperson, said the six real estate developers which purchased the Terms of Reference for the eligibility requirements for the challenge for the selection of the venture partner are Ayala Land Inc. (ALI), Filinvest Land Inc. (FLI), Jones Lang La Salle-Leechiu, Megaworld Corp., Robinsons Land Corp. (RLC), and Rockwell Land Corp.
"These developments are strong indications of the confidence of private business in the real estate market and in the Aquino government," she said.
Of those who purchased the eligibility documents, ALI, FLI and Rockwell attended the pre-eligibility conference held last September t 3 at the BCDA corporate office. Daewoo International attended the pre-eligibility conference but did not purchase the eligibility documents. Also present at the pre-eligibility conference was SMLI.
The 33.1-hectare area up for bidding is composed of lands occupied in part by the Army Support Command and Special Services Unit of the Philippine Army and in part by the Bonifacio Naval Station and Marine Corps of the Navy otherwise known as the BNS/PMC/ASCOM/SSU property.
Under the Bonifacio South master plan, the area will be developed into a medium- to high-density residential and mix-use complex, with a strong institutional component. It will have a maximum allowable gross floor area of 1.355 million sq.m.
The property is located along Lawton Avenue and is separated from the JUSMAG property by the NAMRIA property and a six-hectare strip of land retained by the Philippine Army.
In its unsolicited proposal, SMLI offered an upfront cash of P2 billion upon signing of the JV contract and secure yearly revenues totaling P25.9 billion for 20 years, for a present value of P36, 900 per sq.m. Investment commitment of SMLI for the project stands at a minimum of P20 billion. SMLI will advance the funds for and undertake the replication of military facilities affected by the development of the property.
Zosa said SMLI has the right to match better offers from "challengers." If SMLI declines to match, the project will be awarded to the challenger with the most superior proposal.
Bulk of the disposition proceeds will go to the AFP Modernization Program and the government’s conversion and development projects.
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