Cebu City Mayor Tomas Osmeña announced that a private firm submitted an unsolicited proposal to develop three hectares of Pond F in the South Road Properties (SRP).
In a press conference, Osmeña said Federal Land Inc., the real estate development arm of GT Holdings Capital which owns Metrobank, AXA Philippines, and Metro Pacific Investments Corp., plans to put up a highrise building in Lot 1-F-8 which spans over 29,000 square meters.
It is located near the regional office of the Department of Public Works and Highways-7 (DPWH – 7).
The mayor said the firm is offering to purchase the lot at P80,000 per square meter. If the deal pushes through, this means that the Cebu City government will earn up to P2.32 billion from the sale.
“I already got this offer and I didn’t even ask for it. They’re offering P80,000 and I didn’t ask for them and it’s better than P30,000,” Osmeña said.
This is the third unsolicited proposal being entertained by the city government, under Osmeña’s administration.
The other two are the P22 billion Cebu Cordova Link Expressway (CCLEX) of the Cebu Link Joint Venture, and the P18 billion Kawit Property Development from the Gokongwei-led Universal Hotels and Resorts Inc.
“I did not sell this three hectares yet because I want this property to be announced to let them start building so it would bring up the market value. So that would bring the value of the property… Let’s have this big project first then after, that’s the time we’ll advertise it,” Osmeña said.
He said the city government may even sell the property up to P150,000 per square meter which means they may reap up to P4.35 billion in income.
“Our job is to maximize what we can get for the city. We will wait when this project is launched then I will publish it then will announce that this property is for sale. Their offer is double what SM bought,” Osmeña said.
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