South Road Properties investors remain upbeat

By: Linette C. Ramos
Sun.Star Staff Reporter
Monday, November 10, 2008

INVESTORS are optimistic about their plans at the South Road Properties (SRP) despite the tedious process of acquiring lots there and the economic meltdown in the US.

Filinvest Land Inc. (FLI) Vice Chairman Andrew Gotianun Jr. said they expect to finish negotiating with the City Government and close a deal on the SRP lot purchase by the middle of January, if negotiations succeed.

They submitted yesterday their proposed joint venture (JV) agreement to the City Government’s JV Selection Committee (JVSC) for review.

Bigfoot Global Solutions chief executive officer Michael Gleissner also disclosed the additional P50 million in investment that he will put into their entertainment complex on a leased property at the SRP, which was inaugurated last Saturday.

Timetable

Although Mayor-on-leave Tomas Osmeña is “tough” to negotiate with and won’t reduce the price of SRP lots, he said he is still optimistic he can eventually buy lots in the 302-hectare facility.

Gotianun and Gleissner discussed their proposals and plans with Osmeña at the airport yesterday while the mayor waited for his flight to Manila.

“We’ll try to finish it by mid-January,” Gotianun told reporters, saying he is optimistic that FLI can work on the timetable set by the JVSC on the FLI negotiations.

FLI made a formal offer to buy 10 to 13 hectares of land at the SRP and to develop 40 more hectares under a joint venture with the City Government.

When asked if they will match any counter-proposal from other interested parties, Gotianun said: “We will study it. It’s always like that if you go through this kind of bidding... It’s like what happened to the NAIA Terminal 3.”

FLI’s offer will be subject to a competitive bidding similar to a Swiss Challenge, where other developers will be allowed to compete and buy the property at a higher price and give the City a bigger share in the JV agreement than what FLI offered.

Match

Gotianun said FLI previously turned down a chance to match the winning bidder’s offer, as in the case of the Ninoy Aquino International Airport (NAIA) Terminal 3, “because the proposal of the competitor was way off-course.”

Despite the economic meltdown in the US, which forced Bigfoot Global Solutions to lay off 40 of its 500 employees in Cebu, Gleissner said he intends to pursue the expansion project at the Bigfoot Entertainment complex.

He has so far invested P150 million for the four soundstages for the international movie studio, and will invest P50 million more to put up retail shops, residential buildings and a boardwalk beside a pond.

The facility stands on a two-hectare lot they are leasing from the City for 25 years.

“We actually preferred to purchase, but as the first investor there, the lease was the option available to start things. The mayor here is a very tough negotiator and he’s not going to give the lot for a cheap price,” he said.

Gleissner said that the US’ financial crisis affected his call center business but he is optimistic that his filmmaking business will survive the crisis and he will be able to expand this.

Bigfoot Entertainment has so far produced eight feature films and has done post-production work for US-made films.