By Jenniffer
B. Austria | Jun. 30, 2015 at 11:01pm [ manilastandardtoday.com ]
A consortium
led by property developers SM Prime Holdings Inc. and Ayala Land Inc. has won a
contract to develop a 26-hectare reclaimed property in Cebu City.
SM-ALI Group
consortium submitted a bid of P10 billion to develop the 26-hectare Lot No.
8-B1, the largest portion of the 45.2-hectare South Road Properties in
Cebu. The group was the lone bidder for
the lot, sources said.
Cebu City’s
bid and awards committee said it awarded the project to the SM-ALI Group after
they put a bid of P10.09 billion for the property which has a total area of
263,384 square meters or at the price of P38,015.98 per square meter.
The winning
consortium immediately issued a managers check worth P1.186 billion as security
bond to the city government,
representing10 percent of the total bid.
This is the
first collaboration between the country’s two largest property companies in
Cebu. SM Prime said in a disclosure to the stock exchange it had formed a
consortium with Ayala Land and its affiliate Cebu Holdings Inc. to bid for the
project.
SM-ALI Group
said the project was expected to benefit from the combined financial muscle,
technical expertise and the real estate experience of two companies.
“With the
resources and expertise of these real estate companies, this newest development
at the SRP is planned as another showcase of integrated, master planned and
sustainable developments that will bring in more investments and jobs for the
local economy,” SM-ALI Group said in a statement.
The group
will co-develop the property pursuant to a joint master plan.
The city
government of Cebu on Tuesday conducted the bidding for two lots with a
combined area of 45.2 hectares at the SRP for a floor price of P20,000 per
square meter.
Other
companies that earlier expressed interest in bidding for the SRP lots were
Rockwell Land Corp., Filinvest Land Inc., Robinsons Land Corp. and Aboitizland
Inc.
The
26-hectare lot won by SM-ALI is near the SM Seaside Mall being built by SM
Prime while the other site is Lot 7 and Lot 17 with a consolidated area of 19.2
hectares. Bidding for the other lots was
being conducted as this was being written.
Cebu City
Vice Mayor Edgardo Labella described the outcome of the bidding as a “healthy
exercise.”
“There is no
substitute to a public bidding; open, fair and competitive and the city will
dictate the price of the property… while in unsolicited proposal, it’s the
buyer who will dictate the price.” Labella said.
SM Prime vice
president for market research and planning Ronald Tumao said the group would
follow the terms of reference of the bidding.
“We will be
following the TOR..It will be a big boast to the development of the entire Cebu
and not only the SRP.” Tumao said.
Tumao said
the group would start the development in the area after six months based on the
TOR.
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