Posted on June 21, 2015 09:10:00 PM [
BusinessWorld Online ]
A SUPREME COURT ruling against a
high-rise condominium project near the Rizal Monument could stir caution among
real estate developers and prompt them to review their master plans, property
consultants said over the weekend.
THE 49-STOREY Torre de Manila
high-rise condominium looms in the background of the Jose Rizal tomb at Luneta
Park. A Supreme Court ruling that stopped the project -- after conservationists
alleged it is ruining views of the national monument -- could spook developers,
real estate consultants said. – AFP
The high court’s temporary restraining
order -- handed down against Torre de Manila on June 16 -- would not entirely
send a chilling effect on property developments, but still should prod
developers to closely work with local governments to ensure projects are
reconciled with the national heritage law, they said.
“On the part of the developers, they
will avoid problematic scenarios such as the Torre de Manila case by properly
identifying areas for land banking purposes that they will develop later on,”
Claro Cordero, head of research at Jones Lang LaSalle, said in a mobile phone
message.
“They definitely will be more careful
in respecting zoning laws and in getting permits and zoning exemptions and
variances,” Julius Guevara, head of advisory services at Colliers Philippines,
said in a mobile phone message.
A DMCI Holdings, Inc. subsidiary is
building that condominium project, which conservationists said ruins the view
of the national monument.
Oral arguments were set for June 30,
and DMCI last week said it might contest the ruling.
Regardless of the outcome of the Torre
de Manila case, the government and private sector are seen undertaking more
collaborative efforts to determine areas and properties that are suited for
development and redevelopment.
“The developers along with the
government as well as other stakeholders should work together to identify,
preserve, enrich and ensure that the heritage/cultural development areas and
other areas that serve the greater public interest are incorporated in the
master plan of the communities they serve,” Mr. Cordero said.
‘CAN’T STOP DEVELOPMENT’
8990 Holdings, Inc. President and
Chief Executive Officer Januario Jesus Gregorio B. Atencio III said it has been
common practice for the mass housing firm to be careful in developing projects,
but the “sad situation” of the Torre de Manila project has brought the cultural
and historical impact at the forefront of considerations that real estate firms
must evaluate.
“There has to be a balance between
development and respect for cultural or historical institutions, but the rules
have to be clear,” Mr. Atencio said in a phone interview.
“At the end of the day, the property
development sector as well as the government should be able to work together to
find some compromise because you can’t stop development.”
The Philippines has an existing law
governing the protection and preservation of the nation’s cultural heritage --
Republic Act 10066, or the National Cultural Heritage Act of 2009 -- signed by
then President Gloria Macapagal-Arroyo on March 26, 2010.
DMCI Holdings President Isidro A.
Consunji told reporters in an interview in Aklan the residential tower has
complied with all the legal requirements, including securing a clearance from
the National Historical Institute.
“Some people say it destroyed the
skyline, but that’s very subjective.
If we were told the rules of the game
including if you build there you have to get the approval of the Knights of
Rizal, we would have done that. It was not included in the rules so how do we
know we’re offending the sensibilities,” Mr. Consunji said.
The Knights of Rizal was the
petitioner in the case filed against DMCI that reached the Supreme Court.
The Torre de Manila project is the
latest setback for DMCI with Maynilad Water Services, Inc. -- where it has a
25.24% stake -- locked in arbitration proceedings against the government over
tariff increases.
“This experience is a little bit
unsettling for investors because when people start to meddle on grounds which
are not defined, it causes unnecessary anxiety… I don’t think the government
understands the repercussions of being inconsistent. The repercussions don’t
happen today,” Mr. Consunji said. -- Krista Angela M. Montealegre
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