MANILA, Philippines - State-run Bases
Conversion and Development Authority (BCDA) is set to hold a bidding for the
33.1-hectare Bonifacio South property after terminating the Swiss challenge for
the unsolicited proposal of SM Land Inc. for the development of the area.
BCDA president and chief executive
officer Arnel Paciano Casanova said in a statement yesterday they decided to
set aside the unsolicited proposal of SM Land pursuant to a Malacañang
directive.
“...the Office of the President has
decided to put the development of the subject property on public bidding. In
this light we regret to inform you that we are terminating the proceedings on
the Competitive Challenge and shall be returning the proposal security...” the
BCDA said in a letter to SM Land vice president David Rafael dated Aug. 15.
Casanova said it would be more
advantageous to government to conduct an open competitive bidding for the
property as such procedure would allow it to get both the best price and
development for the asset.
“Transparency, which is the heart of
public bidding, will ensure that everything is above board. This in turn will
encourage the best bidders to compete in a level playing field,” he said.
In Aug. 2010, the BCDA asked real
estate firms to submit proposals to challenge the unsolicited proposal bid of
SM Land to develop the property.
The proceedings were put on hold,
however, with a review by the Office of the President of the lease and other
issues concerning the property.
Casanova said that while the BCDA has terminated
the proceedings on the competitive challenge for SM Land’s proposal, the latter
may still participate in the bidding for the property.
Earlier, SM Land committed to invest
at least P20 billion in the project, with 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.
Other firms that have indicated
interest in the property are Ayala Land, Filinvest Land, Jones Lang La Salle-
Leechiu, Megaworld, Robinsons Land and Rockwell Land.
The BCDA, board has yet to approve the
terms of reference for the bidding of the property.
“We expect the open competitive bidding of this prime property
to attract the country’s top real estate developers and unlock the best value
for government,” Casanova said.
The Bonifacio South property which is
located along Lawton Avenue is occupied by the Army Support Command and Special
Services Unit of the Philippine Army, the Bonifacio Naval Station, and the
Philippine Marine Corps of the Philippine Navy.
The BCDA intends to develop the
property into a medium to high density residential and mixed use area.
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