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BCDA reviewing SM Land’s Boni offer

by Jenniffer B. Austria
[ manilastandardtoday.com ] July 22, 2011

State-owned Bases Conversion and Development Authority is still reviewing the unsolicited bid of SM Land Inc. to develop 33.1-hectare Bonifacio property in Taguig City.

BCDA president and chief executive Arnel Casanova said while a certificate of successful negotiation had been signed between the previous board of BCDA and SM Land, the new management wanted to review the unsolicited bid of the company.

He did not say if BCDA would renegotiate the terms of the bid or ask SM Land to improve the offer.

“We want to have the maximum value for the government. That is the primary interest of the government. We are still studying because we just came onboard,” Casanova said.

In 2010, SM Land submitted a P47.9-billion unsolicited bid to develop the South Bonifacio property.

SM Land offered a P2-billion upfront cash upon contract signing and remittances worth P25.9 billion over 20 years. It also plans to invest another P20 billion to develop the area and promised to advance the funds for relocating the military facilities.

The property is composed of lands presently occupied in part by the Army Support Command and Special Services Unit of the Philippine Army and the Bonifacio Naval Station and Philippine Marine Corps of the Philippine Navy.

Under the South of Bonifacio master plan for the lot, the area is to be developed into a medium-to high-density residential and mix use complex, with a strong institutional component and a maximum allowable gross floor area of 1.355 million square meters.

SM Land proposal was subject to a Swiss challenge, in which the the company must match better offers from other real estate firms to be awarded the project. If SM fails to match other bids, the project will be awarded to the challenger with the most superior proposal.

Six real estate developers, namely Ayala Land Inc., Filinvest Land Inc., Jones Lang La Salle-Leechiu, Megaworld, Robinsons Land Corp. and Rockwell Land Corp. earlier expressed interest in the property.

BCDA had postponed the auction twice to give companies more time to gather requirements from the government and second resolve certain issues on relocation of facilities.

Meanwhile, the BCDA also plans to auction off the 25-hectare Navy Officer Village Association Inc. property in Fort Bonifacio.
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