City Accepts Firm's Plan ( South Road Properties )
Sun.Star Cebu
Wednesday, March 19, 2008
AN official of the Cebu Investments and Promotions Center (CIPC) has announced that the Cebu City Government has accepted the proposal of the Filinvest Group to build a commercial complex in the South Road Properties (SRP).
“The Filinvest proposal has been accepted by the mayor (Cebu City Mayor Tomas Osmeña). The task at hand is to work with COA (Commission on Audit) to make sure it (proposal) has met all the requirements so we can successfully bid it out to any challenger,” said Joel Mari Yu, CIPC managing director.
CIPC is the marketing arm of the SRP, a 290-hectare reclaimed property of the City Government that was funded by a loan from the Japan Bank for International Cooperation.
In an interview with reporters last Monday, Yu said the proposal presented by the Filinvest Development Corp. (Filinvest), a company founded by Cebuano taipan Andrew Gotianun Sr., was to purchase close to 14 hectares at Pond F with the minimum floor price pegged at P15,000 per square meter.
Yu said Filinvest is planning to develop a commercial complex in the area, complete with hotels and shopping centers.
Additional area
“But unless COA will put the stamp of regularity, the City can’t bid this out,” he said.
He said Filinvest also plans to acquire an additional 35 hectares at SRP and enter into a joint venture with the City Government to establish a residential complex at SRP, targeting the retirees market.
Filinvest is one of the country’s major conglomerates, with interests in real estate development and leasing, financial and banking services, and sugar. The company is controlled by the Gotianun family through ALG Holdings Corporation.
Yu also said the City Government is now in the final stage of negotiations with two other major investors who are proposing to develop multi-million peso projects at the SRP.
Apart from Filinvest, those who had shown interest in the SRP include: SM Prime Holdings Inc., which plans to build another mall; Container Systems Corp., a Singaporean company that will need 20 hectares; Taiwanese firm Paul Yu Group of Companies; JY Construction; Arcenas Group; Paknaan Central Development Corp.; Mactan Rock Industries Corp.; King Group of Companies; and the University of Cebu.
Yu earlier said that CIPC has projected the sale of half of the titled reclaimed lots this year or at least 100 hectares, with one to three deals to be closed this June.
“If the three are approved this year, SRP will be fully occupied in less than five years, maybe even by 2011,” he said, adding that full development of SRP will bring in an additional 50,000 jobs.
Even if only one of the three proposals is closed this year, Yu said this would already be an “achievement” for Cebu City, especially in generating additional income not only from leased and purchased lots but also from commissions on all utility firms that will operate there. (MMM)