Published
By Bernie Cahiles-Magkilat
The Philippine Competition Commission (PCC) yesterday approved the
joint venture among Bases Conversion and Development Authority (BCDA),
National Housing Authority (NHA), and Primelux Holdings Development,
Inc. (PHDI) affiliated with the Shanghai Nanjiang Co. Ltd. (SNCL or
Nanjiang Group) for the development of 59.62-hectare prime property
along C-5 Road.
Philippine Competition Commission
In a decision, the country’s anti-trust body, said cleared the
transaction saying it will not likely result in substantial lessening of
market competition.
The BCDA-NHA-Primelux joint venture involves the 59.62-hectare
property located along C-5 Road, Fort Bonifacio, Bonifacio Global City,
Taguig City, Metro Manila known as the “Bonifacio East Property.”
In its review, PCC found that the joint venture “will not result in
substantial lessening of competition due to the existence of sufficient
competitive constraints from within and outside of Bonifacio Global City
market for residential, commercial, and mixed use developments
.
In the joint venture agreement, Primelux is set to finance
project with a minimum investment commitment of P137 billion spread over
9 years, while BCDA and NHA shall contribute the rights to develop and
use the project sites.
In December 2017, BCDA received an unsolicited proposal from SNCL for
the financing, planning, design, development, construction, operation
and management of the said Bonifacio East Property, with 9-ha set for
on-site relocation of informal settler families (ISFs).
BCDA and NHA then proceeded to conduct the Competitive Challenge on
the SNCL’s unsolicited proposal in accordance with the BCDA JV
Guidelines but the agencies did not receive any other bid. BCDA and NHA
has then awarded in favor of SNCL the right to develop the Bonifacio
East Project via joint venture arrangement.
The parties agreed to name the JV as “Bonifacio East Project Joint Venture,” or any other name that may be mutually agreed by the parties on or after the signing date. In its submissions, the establishment of the JV intends to: (a) Develop the Property into the Bonifacio East Project; (b) Promote the economic and social development of the area subject of EO 70, Series of 2002, as amended; (c) Construct new and improved housing facilities for ISFs within the designated relocation site; (d) Spur economic growth in the area by providing business opportunities; (e) Generate employment opportunities in the area; and (f) Engage in the business of developing, leasing, and operation and maintenance of facilities and improvements in the Bonifacio East Project.
The term of the JVA and JV shall commence after approval by the
Philippine Competition Commission (Effective Date) and continue
thereafter for a period of 50 years (Expiry Date), and may be extended
for another 25 years. The Joint Venture shall terminate on the expiry
date unless earlier terminated.
The BCDA is a government instrumentality vested with corporate powers
created by Republic Act No. 7227 where it enters into commercial
transactions to develop its properties or converts former military
reservations and their extensions, portions of Metro Manila camps,
former baselands into alternative productive civilian uses.
The NHA is a government-owned and controlled corporation created by
Presidential Decree No. 757 that is mandated to develop and undertake
housing development and/or resettlement projects through joint ventures
or other arrangements with public and private entities.
Primelux Holdings Development, Inc. is a corporation duly registered
in the Philippines. It is the special purpose subsidiary incorporated
for the purpose of stepping into the rights and obligations of Shanghai
Nanjiang Co. Ltd. (SNCL or Nanjiang Group) in the JV. Primelux is named
as the private sector partner of the Nanjiang Group under the JVA.
The Nanjiang Group is an investment conglomerates in mainland China
founded in 1993 with more than 1000 employees and approximately 10
billion yuan (P80 billion) worth of assets. The Nanjiang Group is the
controlling shareholding of Deluxe Family, a public company listed at
the Shanghai Stock Exchange. Its scope of business is diversified
covering real estate, new materials, artificial intelligence,
bio-medicine and finance. Most of its the commercial and residential
projects are located in the Yangtze River Delta, including Sandalwood
Private Resort, La Vue and Aqua Vista.
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