Cebu Sees More Earnings from Reclaimed Area (Dec 2006)
CEBU CITY--THE city government will start earning from the reclaimed South Road Properties (SRP) next year as some investors were expected to start constructing their facilities, Cebu Investment Promotion Center Joel Mari Yu said.
"I would like to believe that in the first half of next year we will see actual structures coming up," Yu said.
He said negotiations with some investors were in the final stages so the city government was expected generate revenues from the property.
University of Cebu president Augusto Go planned to build a high-end trade high school on a two-hectare lot across the school's campus, Yu said.
The Cebu City government and Go were negotiating for the lease of the area with an option to purchase, he added.
Another investor, Bigfoot wanted to start soon the construction of sound stages and a marina-commercial complex.
The company requires 15 hectares for the sound stage project and another two hectares for the marina-commercial complex.
Yu said Bigfoot planned to purchase outright the two hectares and lease, with an option to buy, the 15 hectares.
Bigfoot also planned to build a 15-story condominium also on the two-hectare area, he said.
"The sound stages project is also their (Bigfoot's) immediate priority. They want to build four sound stages as fast as possible," Yu added.
The Cebu City government also planned to go into joint venture projects with two major real estate developers.
The city was also finalizing an agreement with the Cardiovascular Hospitals of America, which planned to set up a medical facility at the SRP, he said.
There are also pending negotiations for 12 hectares with Taiwanese businessman Paul Yu, who was awaiting the completion of the access road, Yu said.
"Upon completion of the road, not only will Paul Yu come in but two or three other investors who want to come in and put up a standard factory building within that area," he pointed out.
Yu also explained that the bulk of the city's earnings generated from the SRP would come from its share of the utility sales, such as power and water.
"Land leases would only account for not more than 35 percent (of the SRP revenues). More than 50 percent of the revenue will come from our shares of power shares and the balance from our share of the water sales and other utility sales," Yu said.
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"I would like to believe that in the first half of next year we will see actual structures coming up," Yu said.
He said negotiations with some investors were in the final stages so the city government was expected generate revenues from the property.
University of Cebu president Augusto Go planned to build a high-end trade high school on a two-hectare lot across the school's campus, Yu said.
The Cebu City government and Go were negotiating for the lease of the area with an option to purchase, he added.
Another investor, Bigfoot wanted to start soon the construction of sound stages and a marina-commercial complex.
The company requires 15 hectares for the sound stage project and another two hectares for the marina-commercial complex.
Yu said Bigfoot planned to purchase outright the two hectares and lease, with an option to buy, the 15 hectares.
Bigfoot also planned to build a 15-story condominium also on the two-hectare area, he said.
"The sound stages project is also their (Bigfoot's) immediate priority. They want to build four sound stages as fast as possible," Yu added.
The Cebu City government also planned to go into joint venture projects with two major real estate developers.
The city was also finalizing an agreement with the Cardiovascular Hospitals of America, which planned to set up a medical facility at the SRP, he said.
There are also pending negotiations for 12 hectares with Taiwanese businessman Paul Yu, who was awaiting the completion of the access road, Yu said.
"Upon completion of the road, not only will Paul Yu come in but two or three other investors who want to come in and put up a standard factory building within that area," he pointed out.
Yu also explained that the bulk of the city's earnings generated from the SRP would come from its share of the utility sales, such as power and water.
"Land leases would only account for not more than 35 percent (of the SRP revenues). More than 50 percent of the revenue will come from our shares of power shares and the balance from our share of the water sales and other utility sales," Yu said.
