New SRP deal on despite charges filed by province

CEBU, Philippines - Cebu City is set to close another deal for the South Road Properties this despite the complaint lodged at the Office of the Ombudsman for the Visayas by the Cebu Province.

Cebu City Mayor on leave Tomas Osmeña yesterday said the city is near to closing another deal with the SRP which will probably be this month or next.

“No further comments for now,” Osmeña said as going into details might send information to the city’s enemies.

Osmeña said as of yesterday he has neither seen nor received a copy of the 15-page complaint filed by Cebu Governor Gwendolyn Garcia for violation of the anti-graft act when the city entered into a Joint Venture Agreement with Filinvest Land Inc.

Acting Cebu City Mayor Michael Rama earlier said that that he is confident that the lawsuit will not scare away investors in the SRP.

He said the city, along with the councilors, closely studied the joint venture that it approved unlike the Province’s transaction over the Balili lots.

Garcia claimed that the city needed congressional authority when it sold a reclaimed lot.

“Land so granted, donated or transferred to a province, municipality or branch or subdivision of the government shall not be alienated, encumbered or otherwise disposed of in a manner affecting its title except when authorized by Congress,” according to the Commonwealth Act which was mentioned by Garcia.

Filinvest was the first-ever economic entity ever to enter into a joint venture with the city and involved in an actual sale of the SRP.

Another early investor, Bigfoot International only rented a big block of the SRP.

Filinvest will develop the 50.6 hectares of land with its P25-billion project in the area.

It is set to break grounds for the SRP this December.

The development will be mainly multi-residential type with medium-rise buildings, condominium units which will tag the project as an “eco city”, riding the bandwagon of environmentally-friendly buildings.

The city government stands to earn from the outright sale amounting to P1.546 billion for the first three years, and from its 10-percent share in the sale of built-up units in the 40-hectare area, or a minimum guaranteed return, whichever is higher.

The properties covered by the joint venture will be developed in 20 years, at 10 hectares for a maximum of five years.

According to the city officials Cebu City’s joint venture with Filinvest will erase the SRP loan of around P6 billion after the firm agreed to the purchase price of P15,000 per square meter.

The price is also higher than the Commission on Audit’s valuation of P11,400 per square meter; this was one of the points the city made in an ad the city published last April to answer allegations against the joint venture agreement. — Ferliza C. Contratista/BRP (THE FREEMAN)