41-hectare South Road Properties lot ready for bidding

Inquirer

CEBU, Philippines—The Cebu City government is ready to bid out for lease or sale 41 hectares of the 300-hectare South Road Properties.

Joel Mari Yu, managing director of the Cebu Investment Promotions Center, said the reclaimed lots include a 30-hectare block, an eight-hectare area because the two-hectare site leased by Bigfoot entertainment and another three-hectare area which is planned as a site for two condominium towers.



“The 30-hectare block has caught the attention of the three biggest land developers Robinson’s Land Corp., Ayala Land, Inc. and the SM group of companies,” Yu said.

The eight-hectare portion includes already the two-hectare site being leased by Bigfoot Entertainment while the other three hectare is being eyed by a joint venture of an American company with partners from South Korea.

Except for the Bigfoot group of companies, all the rest are only interested to lease.

Yu said that Bigfoot wanted to acquire amore hectares to advance further its diverse interest in the information and communications technology (ICT) sector.

Cebu City administrator Francisco “Bimbo” Fernandez said he has prepared all documents for the bidding of the 30-hectare bloc.

“All we are waiting for is the go-signal of Mayor Tomas Osmeña,” Fernandez said.

Once Osmeña gives his go signal, Fernandez said he would publish the invitation to bid in the newspapers.

Yu said the city government needs to hire a professional group to assist in the technical, financial and legal aspects of the negotiation.

Based on the prepared documents of the Cebu City government, the floor price of the 30-hectare bloc is at P7,000 per square meter. The terms include a 20 percent downpayment upon the submission of the formal offer. Another 50 percent upon the awarding of the contract and the remaining balance will be paid upon the signing of the deed of sale.

For the eight-hectare and the three-hectare portion, Fernandez said that the city government was planning to apply the Swiss-challenge mode if approval is given by the Commission on Audit.

Under a Swiss-challenge model, the city government will advertise the price offer of the interested party and will invite other interested parties to match it.

Fernandez said this model would apply to these properties because there are interested parties already.

So far Bigfoot Entertainment is the only locator in the almost 300-hectare reclaimed property of Cebu City.