2 firms want to buy lots in South Road Properties

Wednesday, October 08, 2008

TWO major developers have informed Cebu City officials of their plan to present an offer to buy lots at the South Road Properties (SRP), but they will have to wait until the first sale is finalized.

Mayor-on-leave Tomas Osmeña said yesterday that the City will have to close a deal with the Filinvest Land Inc. (FLI) first or any other developer that will match its offer, before they entertain other buyers.


Acting Mayor Michael Rama, the City Council and the Joint Venture Selection Committee (JV-SC) for the SRP will go ahead with the sale even without Osmeña.

Osmeña went to Manila last Monday supposedly to inform the Commission on Audit (COA) of his one-month sick leave and that SRP lots might be sold while he is seeking treatment in the United States.

But he said that COA officials were in a meeting in Malacañang. That is why he designated Rep. Raul del Mar (Cebu City, north district) to discuss the matter with COA.

He also met with FLI officials to inform them of his departure.

Proposal

City Administrator Francisco Fernandez, chairman of the JV-SC, said that no one has expressed interest to challenge the unsolicited proposal of FLI yet, which intends to buy 10 hectares of land and develop 40 hectares under a joint venture with the City.

“There are no interested challengers for the Filinvest offer so far, but there are two other developers who have already sent feelers and want to know if they send their proposals, will these be acceptable to the City,” he said.

The interested parties want to buy other portions of the 302-hectare SRP, but have not specified the areas and the lot sizes.

“That’s what we were discussing with them and we agreed that it is best to close one deal before we talk to the others so as not to create a confusing situation,” Osmeña told reporters yesterday.

“This transaction is actually very simple but because of its magnitude and with billions of pesos involved, we have to be careful,” he said.

The mayor will leave for the US at noon today to seek treatment for the tumor in his urinary bladder.

He has filed a one-month sick leave, but could come home earlier or much later, depending on the results of his medical exams.

SRP Management Office head Nagiel Bañacia said that of the 302 hectares, only 200 hectares will be sold since the 60-hectare Pond A has yet to be filled up.

The roads within the SRP and the Kawit Island make up the remaining portion that the City will not dispose of. (LCR)