CityMall urged not to pursue N. Bacalso property lease
Desist from pursuing the lease of the property pending the result of a court litigation.
This is the appeal of stockholders of the dissolved Ludo and Luym Development Corp. (LudoDev) to officials of CityMall Commercial Centers Inc., which earlier announced the signing of a long-term lease with Dunes and Eagle Land Development Corp. for a prime property along N. Bacalso Avenue.
The 1.1 hectare property located beside Elizabeth Mall along N. Bacalso Avenue was illegally transferred to Dunes and Eagle Land Development Corp., said Kelly Luym and his lawyer Negley Tabucanon-Villanueva in a press briefing at the Casino Español de Cebu yesterday.
Villanueva said the property is one of the many properties of LudoDev which was placed under “custodia legis”, or its custody placed under the Court of Appeals in 2004 as a result of the intra-corporate case filed by David Lu against LudoDev in 2000.
The Court of Appeals ruled that the corporation LudoDev be dissolved and all its properties liquidated and have appointed a three-man management committee.
Under ‘custodia legis’ any transfer or conveyance of the properties will need the approval of the Court of Appeals which was violated when the title of the property was transferred to Dunes and Eagle Land Development Corp.
According to documents Villanueva and Luym presented, LudoDev owns a total of 21 properties located in Cebu, Manila and Iligan valued over P2 billion as of 2004 appraisal.
10 Properties
Of these, 10 properties, which make up 42.62 percent of the total assets based on value as of 2004 appraisal, were allegedly illegally transferred to David Lu and Douglas Luym in 2012.
“The 1.1 hectare property which DoubleDragon (CityMall) has signed a long-term lease for is one of these properties illegally transferred to their names and then transferred to Dunes and Eagle Land Development Corp.,” said Villanueva.
Villanueva said they have sent a letter to DoubleDragon last Monday informing them of the pending court case involving the property.
“We have not heard from them yet. Should they decide to pursue the lease agreement, we will ask for an injunction from the Court of Appeals,” she said.
Doubledragon
CityMall Commercial Centers Inc. is owned by DoubleDragon Properties Corp. and SM Investments Corp.
In a disclosure to the Philippine Stock Exchange last week, DoubleDragon said its subsidiary CityMall Commercial signed a 30-year lease agreement with Dunes and Eagle Land Development Corporation.
The project will be called Grand CityMall-Bacalso and is targeted to be completed next year. It is the second CityMall they will be building in Cebu with another one soon to rise in Consolacion town, Cebu.
Other locations include Roxas City in Capiz province and Guiuan and Tetuan in Zamboanga City.
DoubleDragon Properties Corp., which is also partly-owned by Jollibee Foods owner Tony Tan Caktiong, targets to become the largest community malls chain in the country with a million square meters of leasable space by 2020.
The company aims to have one million square meters of leasable space by 2020, 700,000 square meters will be from the planned 100 CityMall.
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