GMCAC, SM Group in talks for property development near airport

MANILA, Philippines – The winning consortium of the Mactan-Cebu International Airport (MCIA) public-private partnership (PPP) deal is in talks with the SM Group and seven other local and international property firms to develop a six-hectare mixed-use property adjacent to the airport.

GMR-Megawide Cebu Airport Corp. (GMCAC) president Louie Ferrer told reporters the consortium is looking to tap a third party company to develop the six-hectare mixed-use property right across Terminal 2 of the airport.

“We may tap third party company to develop the property. Since it is mixed-use development, we are looking at hotels, mall complex, gaming activities including casino,” he said.

He said talks are ongoing with the SM Group and seven other companies interested to undertake development of the property.

“Bidding of real estate component will start two months from now,” Ferrer said.

Ferrer said the facilities of the mixed-use property should be available by late 2018, in time for the opening of the second terminal of MCIA.

GMCAC started the work on the construction of Terminal 2 last year and is aiming to complete and deliver the first phase by October 2018 to bring the MCIA’s capacity to 13 million passengers per year.

Ferrer said the consortium expects the volume of passengers handled by the airport to post double-digit growth this year as carriers expand their operations.

Last year, the MCIA handled eight million passengers, well-above the airport’s 4.5 million annual capacity.

GMCAC took over the operations of the MCIA in November 2014.

Under the 25-year concession agreement for the PPP deal, GMCAC would be responsible for management of the MCIA, renovation of Terminal 1 as well as construction and operation of a second terminal to accommodate rising passenger traffic.

By the end of the concession period, the MCIA is expected to accommodate a total of 28 million passengers per year.