Firm offers P2.4 billion to develop SRP lot

CEBU, Philippines — A private firm has submitted a P2.4-billion unsolicited proposal for a joint venture with the Cebu City government to develop the three-hectare lot at the South Road Properties (SRP).

In a letter dated March 8, Federal Land President Pascual Garcia III expressed the company’s intent to develop Lot 1-F-8, Psd-07-075186 into  a “live, work, and play enclave” composed of nine residential towers, which would be surrounded by a variety of street level shops, restaurants, and other sports and leisure facilities.

“We offer the Cebu City government an equity of P2,390,480,000 in the joint venture. The amount is equivalent to P80,000 per square meter of the property,” read a portion of the letter.

The property with an area of 29,881 square meters is located at the SRP’s Pond F area, which is near the property of Filinvest Inc. or the open space going to the Department of Public Works and Highways-7.

In 2017, the City Council had authorized Mayor Tomas Osmeña to dispose three hectares of land at SRP through public bidding for at least P110,000 per square meter with an expected P3.3 billion in revenue.

Osmeña said there are already several interested buyers even if the property has not been open yet for bidding. Federal Land was the first to submit the proposal.

Based on its letter, Federal Land proposes to conduct the master plan within 12 months after the joint venture agreement between the firm and the city is signed.

Other proposals include the conduct of detailed engineering 24 months after the JVA signing; site clearing and preparation 30 months after signing the agreement; construction of first tower to start within 36 months after the deal signing; and construction of succeeding towers 24 months after the start of the preceding tower.

The Federal Land wants to feature a bay view suburban living inside a fast-paced development hub. The lifestyle tiered nine-tower residential enclave would have 26 floors and 36 floors.

Osmeña said he wanted to close the deal with the Universal Hotels and Resorts Incorporated (UHRI), which proposed to develop P18 billion integrated resort and casino complex on the nine-hectare Kawit Island at SRP.

Once the P18-billion project is materialized, the mayor said the market value of the city-owned property is seen to increase, exceeding the floor price of P110,000 per square.

He said he will call for a public bidding once the joint venture agreement with UHRI is signed.

Osmeña, however, appreciated Federal Land’s offer at P80,000 per square meter which is more than double the  revenue generated from the sale of the 45.2-hectare property at SRP.

In 2015, the city government sold the 45.2-hectare lot at P16.7 billion to three giant developers.

Osmeña said the city government could have gotten P32 billion in revenue should the 45.2-hectare lot had an P80,000 per square meter floor price.

But Osmeña contended that there was no sale made since there was no authority from the City Council for the signing of the contract in the previous administration. —KBQ (FREEMAN)