Cebu City receives P1B from Filinvest’s JVA’s 10th year share for SRP dev’t
CEBU CITY, Philippines—The Cebu City government received P1 billion from Filinvest Land Inc. for the 10th year of their Join-Venture Agreement (JVA) to develop a 40-hectare property at the South Road Properties (SRP) which was inked in 2009.
Cebu City Mayor Tomas Osmeña said that the P1 billion would go directly to the city’s treasury to be part of the general funds of the city and would not yet be allotted for any project.
“This money is for the city. This is not for me,” said Osmeña.
The P1 billion is the minimum guarantee of Filinvest to Cebu City that is to be remitted every five years which is made up of 10 percent of every sale Filinvest makes on the property currently consisting of the City Di Mare, Amalfi and Sanremo.
Read more: Filinvest’s IL Corso to open in December
In 2014, the city received P1 billion as well as for the first five years of the JVA.
Osmeña said that this JVA would benefit the city in the long term since the earnings of Filinvest could exponentially increase through the years as the land would further be developed and more people would buy the units.
“This is advantageous in the sense that it is progressive. If they raise the price, we get 10 percent (share). If they decide to put more floors, we get 10 percent of the sales. The price is not per square meters,” Osmeña said.
Tristan Las Marias, the Senior Vice President of Filinvest, said that the development of the 40-hectare property is still around 50 percent or 20 hectares.
“That’s the good part about it. We barely developed 20 percent of it and there is more to come,” said Las Marias.
Las Marias said the prices of the units had recently become competitive and ‘attractive’ which would be highly advantageous to the city since every sale they would make, the city would have its share.
Osmeña said that the P2 billion earnings for the last 10 years was enough for a development that the city did not have to spend much for.
“I survived without anything. I did not touch money they paid the city, and we are still here. I’m doing this for what Cebu will be like when I’m no longer here,” said Osmeña./dbs
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