MANILA, Philippines - The SM
conglomerate of mall and banking tycoon Henry Sy is keen on joining the auction
for a large block in state-owned Food Terminal Inc. (FTI) in Taguig.
Bagging the 74-hectare property, which
was subject to numerous delays, will allow the company to pursue more mixed-use
developments, an executive said.
In a chance interview, Henry Sy Jr.,
vice-chairman and chief executive of SM Development Corp., told The STAR that
the SM group will join the bidding for the FTI property.
“Of course,” Sy said when asked if the
SM group is interested to bid for the property.
“I will be interested,” Sy said,
adding that the conglomerate is just waiting for the bidding terms.
Early this month, the Department of
Finance’s Privatization Management Office announced that 74 hectares of the
103-hectare FTI agro-industrial complex is up for sale anew following three
years of delay and three failed biddings.
The government will retain the rest of
the property for various purposes. FTI is one of the largest industrial
complexes in Metro Manila and is currently home to more than 300 companies.
“That will be perfect for mixed-use
(development),” Sy said.
Sy said SM Development, for its part,
will build high-end but affordable condominium projects in the area.
Holding firm SM Investments Corp. has
five core businesses -- retail (SM Retail Inc.), malls (SM Prime Holdings
Inc.), banking (BDO Unibank Inc. and China Banking Corp.), property (SM
Development) and hotel and entertainment (SM Hotels and Conventions Corp.).
“The 70-hectare lot is large enough
for landbanking. This would give them more available lots to develop, thus
opening opportunities for additional revenue streams,” said Freya B. Natividad,
investment analyst at brokerage firm 2Trade-Asia.com.
However, the SM group could end up
competing with Ayala Land Inc. of the Zobels, Empire East Land Holdings Inc. of
property tycoon Andrew L. Tan, Filinvest Land Inc. of the Gotianuns and
Robinsons Land Corp. of the Gokongweis who were reportedly interested for the
prime property.
The government last year scrapped its
plan to sell the property for at least P13 billion as it reappraised the
property.
The government declared the 2009
bidding a failure as no offers turned up due to unfavorable market conditions
arising from the global financial crisis.
Part of the proceeds will go the
Department of Agrarian Reform for the Comprehensive Agrarian Reform Program and
to the Department of Agriculture.
With the sale, the government expects
economic activities in Taguig City and nearby areas to flourish as employment
increases and transport linkages in the complex improves.
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