By Zinnia B. Dela Peña (The Philippine Star) Updated January 23, 2012 12:00 AM
MANILA, Philippines - The Bases Conversion Development Authority (BCDA) said it expects to submit this week its final recommendations to the Office of the President, which will decide whether SM Land’s revised offer for the 33.1-hectare Bonifacio South property is acceptable as a basis for a Swiss challenge.
BCDA president and chief executive Arnel Paciano Casanova said the agency is thoroughly reviewing SM Land’s offer to make sure the government gets the best deal.
SM Land has committed to invest at least P20 billion in the project, an upfront cash of P2 billion upon signing of the joint venture contract, as well as secured annual revenues for 20 years totaling P25.9 billion.
Casanova said should President Aquino accept SM Land’s improved offer, it would be subjected to a Swiss challenge.
Under the Swiss challenge, the Sy-owned firm should match better offers from other property firms to bag the property.
Another option the government might take is to dispose the property through public bidding.
Six other real estate developers, namely Ayala Land, Filinvest Land, Jones Lang La Salle- Leechiu, Megaworld, Robinsons Land and Rockwell Land had earlier signified interest in the property.
BCDA has already called for a Swiss challenge on SM Land’s offer in 2010 but there was no challenger.
The Bonifacio South property is composed of lands presently occupied in part by the Army Support Command and Special Services Unit of the Philippine Army and by the Bonifacio Naval Station and Philippine Marine Corps of the Philippine Navy otherwise known as the BNS/PMC/ASCOM/SSU property.
The BCDA wants to develop the property into a medium- to high-density residential and mixed use complex.
The property is located along Lawton Ave. and is separated from the Jusmag property by the NAMRIA area and a six-hectare strip of land retained by the Philippine Army.