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Govt reviewing SM Land’s South Bonifacio proposal

    Published : Friday, July 22, 2011 00:00  [ ]
    Written by : Darwin G. Amojelar

STATE-RUN Bases Conversion and Development Authority said it is reviewing the unsolicited proposal of SM Land Inc. to develop a military lot in South Bonifacio.

“We are still studying our options there because SM submitted an unsolicited proposal before we came in. So, we have a new management and new board. We are looking at the details of their proposal,” Arnel Cassanova, BCDA president and chief executive told reporters.

SM Land had submitted to BCDA an unsolicited proposal to develop the 33.1-hectare military lot in Bonifacio South, with an investment commitment of at least P20 billion.

The company’s proposal offers upfront cash worth P2 billion upon the signing of the joint
venture contract as well as secured annual revenues for 20 years totaling P25.9 billion, for a present value of P36,900 per square meter.

Cassanova said the review of the SM Land proposal is meant to ensure the greatest and best value for the government.

“Our target is to do it the early time as possible to resolve it. The earlier the better,” he said.

Earlier, six real estate developers, namely Ayala Land Inc., Filinvest Land Inc., Jones Lang La Salle-Leechiu, Megaworld Corp., Robinsons Land Corp., and Rockwell Land Corp., purchased the Terms of Reference for the Eligibility Requirements to challenge the offer of SM Land.

Under the Bonifacio South master plan, the BNS/PMC/ASCOM/SSU lots would be developed into a medium- to high-density residential and mixed-use complex, with a maximum allowable gross floor area of 1.355 million square meters.

The property is located along Lawton Avenue and is separated from the 34.5-hectare Joint US Military Advisory Group property by state-owned National Mapping and Resource Information Authority’s (Namria) property and a six-hectare piece of land retained by the Philippine Army.
Megaworld had won the contract to develop the Jusmag property.

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