Tomas to keep South Road Properties lot negotiations hush-hush

The Freeman
Wednesday, September 19, 2007

Mayor Tomas Osmeña will no longer reveal details of his negotiations with potential investors at the South Road Properties after some investors reportedly criticized him for revealing details of their negotiations.

Osmeña, who said he respects the wishes of potential investors, yesterday explained that he revealed details of negotiations to the public because he only wanted to be transparent just like the way he is running City Hall.

The mayor, however, told reporters that there are five potential investors who want to purchase the 30-heactare part of the SRP at the Mambaling side. The city would soon bid out the 30-hectare area.

“There are at least five interested bidders but I can’t give you the details because I was criticized by investors for talking about our negotiations. But I was just transparent,” Osmeña said.

There are also investors who want the other portions of the 300-hectare facility but Osmeña said that the city would prioritize the sale of the 30-hectare portion, saying the city would be very liberal on its first sale.

Earlier, the mayor said that there is a certain investor who offered to buy the lot for P2 billion but while the city has not decided on it, the lot is still open for other offers. He said that the lot will be sold at a minimum of P7,000 to P13,000 per square meter or around P2 billion to P4 billion for all 30 hectares.

“Our first sale would be very liberal, so now is the best time to make a deal,” he said.

He reiterated that the city is aggressive in selling the SRP because it needs to have extra income aside from traditional sources to meet its liquidity requirement for the next few years.

Osmeña earlier said that the city needs to raise P500 million this year to take care of the city’s debts for its loan from the Japan Bank for International Cooperation for the funds it spent in developing the SRP.

The city government still has a remaining balance of P6.3 billion on its loan with the Japan Bank for International Cooperation as part of the 12.292 billion yen it borrowed from the bank to build the SRP. The loan is payable in 20 years. - Wenna A. Berondo/QSB

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City to close sale on South Road Properties lot this year: Tom

Sun.Star
Tuesday, September 11, 2007

CEBU City will close a sale on a South Road Properties (SRP) lot this year, Mayor Tomas Osmeña announced yesterday.

Osmeña, however, said he will hold back some details of the discussions with interested investors at their request.

Osmeña said a parcel of land will be bidded out and sold to the winning bidder by the end of the year.

The mayor initially planned to sell only the 30-hectare lot just after the SRP welcome hill but because several prospective buyers want properties other than the one he wants to sell, he may consider selling other lots.

He has not set criteria on what industries or investors will be prioritized for the first sale since his only concern is to raise money for the next loan payment.

Ideal use

If he had his way, he wants the winning bidder to build a commercial-industrial complex that will include a 25,000-seating capacity coliseum, which is the most ideal use for the 30-hectare lot.

“Yes, we should have something happening before the year ends, definitely we will have something... Some developers prefer sites other than the 30 hectares. We are now discussing with COA on what the different alternatives are (in bidding out the lots),” said Osmeña.

The floor price for the lots during the bidding will be P5,000 per square meter, “and it will be open to everyone, it’s open to the universe.”

In his news conference yesterday, the mayor said interested investors at the SRP have criticized him for his pronouncements on their interests at the SRP and their planned developments.

Quandary

“That is why I am now in a quandary because the SRP is owned by the people of Cebu City and right now, they’re saying ‘Please don’t announce anything’. So for now, I will hold back what I can, anyway we’re not sacrificing so much transparency because once it’s finalized, we will have to disclose that eventually,” he said.

Osmeña had earlier announced that shopping mall giants SM Prime Holdings Inc., Filinvest Land Inc., Robinsons Land and Ayala Land are all interested to put up mix-use developments at the SRP.

He did not say yesterday whether the same parties will be participating in the bidding.

After making the first sale, the mayor said he will give high priority to industries that will increase the marketability of the SRP, such as a high-end hospital facility for retirees and expatriates.

The first investor to put up a high-rise building at the SRP will also enjoy concessions from the City Government.

Osmeña said soil tests conducted showed that buildings as high as 20 stories can be constructed there, just like the high-rise hotel that Sheraton built at the North Reclamation Area.

Contrary to reports that high-rise buildings in reclaimed areas are not safe, the mayor said the Sheraton hotel will be operational soon under the management of another hotel chain, Sofitel.

“Our concern at this time is to address liquidity problems and once we raise a few hundred million pesos, I’m happy already. The order of the day is not to go bankrupt and once that is satisfied, we’ll start to be picky again,” Osmeña added. (LCR)

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