By Zinnia B. Dela Peña (The Philippine Star) Updated December 31, 2011
MANILA, Philippines - SM Land Inc., the commercial property development and management arm of Sy-owned SM Investments Corp., has obtained the Securities and Exchange Commission’s nod to double its capitalization to P2 billion.
Documents filed with the SEC show that the capital increase was intended to cover SM Land’s dividend declaration.
SM Land submitted an unsolicited proposal to the state-run Bases Conversion and Development Authority to develop a 33.1-hectare military lot in South Bonifacio into a mixed-use complex. It committed to invest at least P20 billion.
The company’s proposal offers upfront cash worth P2 billion upon 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.
Six major real estate developerss namely Ayala Land, Filinvest Land, Jones Lang La Salle-Leechiu, Megaworld Corp., Robinsons Land and Rockwell Land, earlier 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 property and a six-hectare piece of land retained by the Philippine Army.