Labella mulls long-term lease deal for SRP lots

CEBU, Philippines — After three postponements, attempts to sell the three-hectare lot in the South Road Properties may have already come to an end as incoming Cebu City mayor Edgardo Labella has other plans in mind.

Labella, who will officially assume office by noontime of June 30, said in a phone interview that he prefers long-term leases over selling the properties at SRP.

“I really have to make a reassessment. Maybe we’ll no longer sell. Instead of selling the property, we’ll just have the long term leases instead, because that way we will still have our property,” he told The FREEMAN.

Two years ago, the members of the City Council passed an ordinance authorizing outgoing Mayor Tomas Osmeña to sell the three-hectare lots at SRP.

The property covers Lot 1-F-8, Psd-07-075186 with an area of 29,881 square meters (sq.m.). It is located in the SRP’s Pond F area, which is near the property of Filinvest Land Inc. or the open space going to the Department of Public Works and Highway-Region 7. The property is valued at P3.3 billion, or P110,000 per square meter.

The Bids and Awards Committee (BAC) initially set the first bidding on January 23 but was later moved to February 8 to allow the bidders to comply with the requirements. It was again postponed until the election ban took effect.

Osmeña initially planned to dispose the property through an unsolicited proposal. It was on April 2018 when Federal Land, Inc. expressed interest to purchase the property at P115,000/sq.m. or for a total of P3.43 billion.

However, Osmeña dropped the plan as the Commission on Audit has not responded to the communication of the city government on the proposal.

In the ordinance, the floor price is pegged at P110,000 per square meter or for a total of P3.3 billion.

Labella said he will also look into the companies that will express intent to buy the property.

“If there are good offers to buy at P110,000 and the terms and conditions would be advantageous to the city then I will seriously consider it. But I still prefer to have a long-term lease,” he added.

Labella said there are investors that expressed interest for the long-term lease. He, however, did not disclose the names of the companies and the projects proposed to be implemented there.

He said he made it clear to the investors that he prefers long-term lease, because it is more favorable to the city rather than selling the property.

The outgoing administration will turn over all documents to the incoming administration, including projects, programs, among others, on June 30 at 2 p.m. at Cebu City Hall.

Labella will also take his oath of office together with the newly elected and reelected officials of Partido Barug-PDP Laban on Sunday. —/JOB (FREEMAN)