Filinvest to submit complete proposal (South Road Properties)

Sunday, October 26, 2008


The Cebu City’s joint venture committee that studies the multi-billion proposal of Filinvest Land Inc. to purchase and develop a portion of the South Road Properties is scheduled to convene on Tuesday, a day after the proponent submits its complete business proposal on Monday.

Cebu City administrator Francisco Fernandez, who heads the committee, said the formal negotiation on the proposal will begin on Tuesday and they expect it done within 10 days.

The committee is tasked to evaluate the proposal of Filinvest and make a recommendation for approval of the mayor and the City Council.

Filinvest, one of the largest real estate companies in the Philippines, is offering an outright purchase of the 10-hectare hectare portion of the SRP worth P2 billion.

Aside from this, Filinvest also offers a joint venture with the city government to develop 50 hectares out of the 300-hectare property.

So far, Fernandez said that there has been no “feelers” or other developers expressing their intent to compete with Filinvest’s offer.

Once the committee’s recommendation is approved by the City Council and the mayor, it will be published in a newspaper of general circulation to give other developers a “competitive challenge.”

The publication of their approved recommendation is to give other developers the chance to challenge the offer of Filinvest and see if they could give a better deal than what is offered by the Filinvest, should there be any.

After publication, any developer has 30 days to challenge Filinvest’s proposal.

If the challenger offers a better deal, the committee will evaluate as to whether it has the capacity to compete or the capability to invest money and develop the proposed project.

The committee will also see to it that the bid of the challenger is more favorable for the city as compared to the offer of Filinvest.

Fernandez is optimistic that they will be able to close the deal with Filinvest before the end of the year.

Just recently, the National Power Corporation expressed its intention to purchase a 3,000 square meter lot at the SRP to use it for its new regional office. —Mitchelle L. Palaubsanon/WAB