City has no hand in FLI development (South Road Properties)

THE Cebu City government could not dictate what development Filinvest Land Inc. (FLI) will implement in the 10.6-hectare reclamation area it bought at the South Road Properties (SRP).

Joel Mari Yu, managing director of the Cebu Investment Promotions Center (CIPC), the SRP marketing arm, assured that the city can get the promised P1.5 billion cash within the first three years.

The joint venture agreement between the city and the Filinvest covers two properties: an outright purchase of the 10.6- hectare known as Pond F and the development of another 40 hectare property under a profit sharing arrangement with the city government.



Since the 10.6 hectare property was directly bought by the FLI at P15,000 per square meter, then the city does not have any right to direct whatever development it wants to undertake.

According to Yu, this property will be known as FLI's “self development” project wherein the city would only depend on its development proposal.

The Joint Venture (JV) contract states that FLI will “develop the sale properties into a modern urban center consisting of residential, office, commercial, hotel and leisure buildings, and a public promenade.”

While the other property, which is under a profit – sharing arrangement with the city, will be developed into an “integrated and well–planned clusters of medium rise residential buildings for condominiums and hotels, and a portion for an IT building.

Aside from the sale of the 10 hectare, the city can also get either a minimum guarantee of return or a 10 percent of the gross sales of the building spaces being sold, whichever value is higher.

“I am the one who negotiated. I know the city can survive within the first three years, and I know we can get the P1.5 billion in the first three years,” Yu assured.


REPORTER MARIAN Z. CODILLA AND CORRESPONDENT JULLY VENUS CUIZON