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Bidding for Bonifacio site advances with new SM offer

Posted on January 05, 2012 09:52:54 PM [ BusinessWorld Online ]

SM LAND, Inc. has reportedly submitted the awaited revision of its unsolicited proposal to develop a 33.1-hectare military lot in Taguig City, moving forward government efforts to bid out the contract.

“SM has submitted another offer around last week and we are currently evaluating it,”Arnel Paciano D. Casanova, president and chief executive of the state-run Bases Conversion and Development Authority (BCDA), told BusinessWorld in a text message yesterday, referring to the property dubbed Bonifacio South.

He declined to divulge the amendments to SM Land’s P47.9-billion offer made earlier, an amount which included the development cost, promised revenue remittances to the government and a contract-signing bonus.

Jose T. Sio, chief finance officer of parent firm SM Investments Corp. declined to comment yesterday.

BCDA is now expected to submit its final recommendations to the Office of the President by end-January, which will then determine if SM Land’s offer is acceptable as a basis for a Swiss challenge.

“We will offer the President options and steps so that the President will have something to consider. At the end, it is the President’s decision. If ever the President accepts SM’s unsolicited offer, there will be a Swiss challenge based on the rules,” Mr. Casanova said, referring to the process wherein the original proponent will have an opportunity to match the highest counter offers to win the contract.

The Bonifacio South property was already subject to a Swiss challenge in 2010 with six other firms -- Ayala Land, Inc.; Filinvest Land, Inc.; Jones Lang La Salle-Leechiu; Megaworld Corp.; Robinsons Land Corp.; Rockwell Land Corp. -- signalling interest in the auction by acquiring terms of reference documents.

But the process had been delayed due to issues on how to relocate military facilities there.

BCDA intends the Bonifacio South property to become a medium- to high-density, mixed-use complex.

“For one thing, it’s in between Bonifacio Global City and the international airport, so it’s a very attractive development site,” Victor J. Asuncion, CBRE Philippines, Inc. executive director said in a telephone interview.

Already, the Sy-led conglomerate had been reported to put up a mall along C-5 road to take advantage of the strategic location.

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