[ Malaya.com.ph ] December 6, 2011
THE Bases Conversion and Development Authority (BCDA) sees higher revenue from the Bonifacio South property following the decision of SM Land Inc. to improve its offer.
Arnel Casanova, president and chief execu1tive officer of BCDA said, SM Land is improving its unsolicited proposal for the development of the 33.1-hectare property in South Bonifacio.
SM Land is expected to top its offer of P36,900 per square meter, already a premium over the price of another joint venture of BCDA with Megaworld Corp. for the JUSMAG property also in Fort Bonifacio which fetched P33,000 per sq.m.
"We’re waiting for the improved offer and if accept the offer, then it would be subject to Swiss challenge," said Casanova.
Under the Swiss challenge, SM Land should match better offers from other real estate companies and if it fails to match other bids, the project will be awarded to the challenger with the best offer.
SM Land had committed to invest at least P20 billion to develop the property. The offer calls for an upfront cash payment of P2 billion upon the signing of the joint
venture contract as well as secured annual revenues for 20 years totaling P25.9 billion.
The net present value amounts to P36,900 per sq.m.
Located along Lawton avenue, Bonifacio South covers the lots where the Army Support Command and Special Services Unit of the Philippine Army, the Bonifacio Naval Station and Philippine Marine Corps of the Philippine Navy are located. It Is ideal for a medium- to high-density residential and mixed-use complex.