City Vows to Complete SRP Within Three Years (Jan 2007)

The Freeman

The Cebu City government is confident of fully developing the 300-hectare South Road Properties (SRP) in the next two to three years.

Cebu City Mayor Tomas R. Osmeña said because of investors' high interest in the property, fast development will be seen within the area soon.

"Everybody likes SRP. It's strategically located," Osmeña said in an interview.


Few days ago, SM Prime Holdings, Inc. (SMPHI) Hans Sy visited SRP, as the area is one of the primary choices of the company for its shopping mall expansion plan in Cebu.

He said some investors are waiting for the SRP or the City government to go bankrupt and will eventually offer cheaper cost of lots, but the Mayor said "it won't happen."

SRP's per square meter is pegged at P10,000 to P15,000, depending on the location.

The Mayor reiterated that the price of SRP lot will not go down, instead double in the next few years.

"Some are waiting to see that something will happen to SRP, but it will not happen," the Mayor said referring to the impression that SRP will eventually give in to cheaper (lot) rate, because of financial problems.

According to Osmeña, among other interested investors in SRP, the Bigfoot plan excites him the most.

He said Bigfoot had initially presented to build a 16-hectare integrated development plan at the SRP, which will showcase another first in Cebu.

The Mayor mentioned a mega Yatch Club that will be developed by Bigfoot, including a sprawling all-in-one leisure and commercial facility that will be a one-of-a-kind facility in Cebu.

The City Government, the developer of SRP, is currently in negotiations with Bigfoot.

He said the company is also looking into the details of the project master-plan.

The Cebu Investment and Promotions Center (CIPC) is commissioned by the Cebu City government to market the SRP.

If fully developed, SRP is expected to generate at least 40,000 employments to Cebu. It is also estimated to bring in an annual income of P30 million from real state taxes alone.

Last year, the Mayor said that it does not matter when the SRP could finally take off in terms of accommodating operational investments, what matters most is when it is ready it is something that Cebu can be proud of.

"I don't serve the cake until it is baked. We have to do it correctly," said Osmeña referring the readiness of SRP to accommodate interested investors.

"We are not going to open a make-shift development. It should be something that Cebu can be proud of," the Mayor added.

Reportedly, aside from Bigfoot Group which proposed a Yatch Club, huge Movie Studio and integrated facility, and SM Group, the Filinvest Group also initially expressed interest to build a commercial project inside the SRP, and a Singaporean-company called Cebutainer Systems Corporation which needs 20-hectare for its facility.

Other investors that earlier expressed interest included; Taiwanese firm Paul Yu Group of Companies; JY Construction; Arcenas Group; Pakna-an Central Development Corporation; an American company to build Cardiovascular Hospital, Mactan Rock Industries Corporation; Filinvest-to build a commercial center; Ayala Land; King Group of Companies; Japanese-owned Kurata company to construct a condominium facility; University of Cebu; and another Japanese company called Sonnette to build a retirement village for Japanese market, among others.

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Tom's Authority to Sell SRP Lots, Enter Business Deals Proposed (Jan 2007)

The Freeman

A proposed resolution has been filed at the City Council authorizing Mayor Tomas Osmeña to sell some lots of the 295-hectare South Road Properties, and to enter into joint business ventures between the city and private entities.

Councilor Jose Daluz III, chairman of the council committee on real property, said the move would draw investors and property buyers to the SRP that would eventually turn it into a developed and productive zone, as its original purpose.
In his proposed resolution, Daluz identified some portions of the SRP that are up for disposal: Lot 1-B, under Title No. PT-13351, with a total area of 616,052 square meters; and Lot-F, under Title No. PT-13354, with an area of 157,135 square meters.

Osmeña earlier said that three big investors were interested to buy lots from the SRP for their businesses. These are Philinvest, SM Mall, and Bigfoot.

Bigfoot, a US-based information technology company with investments in communications, process outsourcing, and education and entertainment, had planned to buy 16 hectares from the CSRP. It had already submitted to the city its proposal for the matter.

SM Company had also considered buying about 30 to 50 hectares with willingness to pay these in cash as soon as the deal pushes through.

Philinvest, for its part, will buy 30 hectares and will open a restaurant in Kawit Island, as its way of bringing in economic activity to the area and subsequently entice more investors.

Presidential Proclamation No. 843 declared SRP as alienable and disposable property, and granted its ownership to the city government. SRP's Special Patent No. 3693 and Original Certificate of Title No. O-3581 were already issued to the city.

With these documents, Daluz said the SRP "are proprietary or patrimonial in character." He said that lands acquired by the city for patrimonial purpose could be sold to private parties, unlike those lands acquired for public purpose.

The SRP consists of "prime and strategic economic zones principally designed for commercial, industrial, entertainment and tourism oriented ventures," which underscored the purpose of its construction and development, said the Daluz proposal.

Daluz said the Local Government Code provides that LGUs shall have the power and authority to acquire, develop, lease, encumber, alienate or dispose of real properties held in their proprietary capacity and to apply their resources and assets for productive, development, or welfare purposes. - Garry B. Lao

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Four Mega-Firms Plan to Buy SRP lots–Mayor (Jan 2007)

By Chris Ligan
Cebu Daily News
Last updated 12:57pm (Mla time) 01/18/2007

FOUR big companies are interested to buy at least 30-hectare-lots and put up their businesses in the South Road Properties (SRP) in Cebu City.

Mayor Tomas Osmeña said yesterday he has been negotiating with the owners of Big Foot Entertainment and was starting talks with owners of SM, Alta-Vista and Filinvest.
Big Foot has invested P9 million in Mactan where a movie studio and film school was built.

SM is owned by the Henry Sy, who is one of the richest Filipinos in 2006.

AltaVista and Filinvest are big real estate firms.

The mayor is aiming for a new upscale image for Cebu City.

Big Foot wants to buy a 60-hectare lot beside the sea near the Kawit Island.

The company plans to construct a mega-studio and a yacht club, which would cater to wealthy yacht owners from Hong Kong and Singapore.

Part of his plan, Osmeña said, is to put up a refueling station in between the Philippines and Singapore so that the rich families from Singapore and Hong Kong could refuel their yachts while on their halfway trip to Cebu.

“Daghan mga datu sa Singapore ug Hong Kong nga daghan kaayog mga yacht that cost 10 to 50 million dollars apan wala silay adtuon. So, we will organize trips to come and visit the Philippines and visit the Visayas,” Osmeña said.

The Sys, SM's owners, will be in Cebu this week to discuss the plan to invest in the SRP with city officials.

Osmeña said SM is planning to construct the Mall of Asia, (???) which would include an entertainment center, high rise buildings and a shopping mall.

Osmeña didn’t give details on the plans of other investors to buy lots in the SRP but he said that the lots would be bidded out.

But he said he had given priority to the investors who would not only buy lots in the SRP but also bring economic activity in the area.

“I think, the people are beginning to realize that the SRP is a good investment. Pero, di ta gusto nianang bisan kinsa lang mopalit unya junk yard lang (but I don't like the idea of letting anybody to buy lots in the SRP especially those who only plans make the lot a junk yard),” Osmeña said.

Mayor Osmeña's interest in constructing the Department of Tourism building in Kawit Island has waned with the strong interest that several investors has shown in the SRP.

He said constructing the DOT building would no longer be his priority since the government had not made the project a priority even if there was a financier, who was willing to fund the project.

“We just finish the development of SRP. When they (DOT) already want to put up their office sa dump site nalang,” Osmeña said.

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3 Big Companies Investing in SRP (Jan 2007)

The Freeman 01/18/2007

If negotiations push through, at least three big companies will pour investments into the 295-hectare Cebu South Road Properties (SRP), formerly the South Reclamation Project.

In a press conference yesterday, Mayor Tomas Osmeña said Filinvest, Shoemart and Bigfoot have expressed interest in purchasing portions of the SRP, expecting that this would generate more employment in the city.

Bigfoot, a US-based information technology business solutions firm with interests in communications, business process outsourcing, education and entertainment, is interested to purchase 16 hectares of lot at the SRP. It already submitted a written proposal over its intention.

According to Osmeña, the "Queen City of the South" may also become the "Hollywood of Asia" as Bigfoot is considering locating its film studio to the SRP.

The mayor said Bigfoot officials have been talking with longtime Cebu resident Mike Gleissner, chairman of the board of Bigfoot Group of Companies, on their SRP interest. The company will also put up a port at the SRP for its mega yacht club, Osmeña said.

SM also considered purchasing 30 to 50 hectares of SRP lot in cash as soon as the negotiation will push through. Contrary to what he previously said that he does not want to establish a mall at the SRP, the mayor said he now considers the development of an SM mall in the area because it could generate employment.

Osmeña also said the Philinvest will purchase a 30-hectare lot at the SRP and that it is interested to open a restaurant on Kawit Island. The city government has been putting up a man-made white sand beach in Pond F near Kawit.

But the mayor said he wanted to remain selective of the investments that would be poured into his centerpiece project. Top priority would be companies that would generate more employment.

As they have been getting investment proposals, Osmeña said the city would be finalizing everything since they will look into the technicality and legality of dividing the land title for the SRP.

Osmeña, however, said there is still no specific amount for the purchase of the SRP lots. - Garry B.

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