SIX companies have expressed interest to challenge SM Land Inc.’s (SMLI) unsolicited proposal to develop the 33.1-hectare property in Bonifacio South managed by the Bases Conversion and Development Authority (BCDA).
BCDA executive vice president and spokesman Aileen R. Zosa identified the six firms as Ayala Land Inc. (ALI); Filinvest Land Inc. (FLI); Jones Lang La Salle-Leechiu (JLL); Megaworld Corp.; Robinsons Land Corp. (RLC); and Rockwell Land Corp. Zosa said the six companies purchased the Terms of Reference (TOR) for the Eligibility Requirement for the Competitive Challenge for the Selection of BCDA’s Joint Venture Partner for the Privatization and Development of the approximately 33.1-hectare BNS/PMC/ASCOM/SSU Properties in Bonifacio South.
“This development is a strong indication of the confidence of private business in the Philippine real estate market and in the Aquino government, she said in a statement.
Of the firms that purchased the eligibility documents, ALI, FLI and Rockwell attended the pre-eligibility conference held on September 3 at the BCDA Corporate Office.
As this developed, SMLI is unfazed by the challenge posed by the six companies.
“SM Land already came out with its bid. So other bidders for the property will need to bid higher,” said SM Investments Corp. (SMIC) vice president for investor relations Cora Guidote in a text message.
SMIC is the holding company of the SM Group. Publicly listed in 2005, it is today one of the Philippines’ biggest conglomerates, occupying a dominant position in retail, mall operations, banking, property development and in the hotels and conventions business.
SMLI’s proposal offers an upfront cash of P2 billion upon signing of the joint-venture contract and secured yearly revenues totaling P25.9 billion for 20 years, for a present value of P36,900 per square meter (sqm).
Investment commitment of SMLI for the project stands at a minimum of P20 billion. SMLI will advance the funds for and undertake the replication of military facilities affected by the development of the property
Zosa further explained that SMLI has to match better offers from “challengers” to be awarded the project. If SMLI fails to provide a better offer, the project will be awarded to the challenger with the most superior proposal.
BCDA said Daewoo International attended the pre-eligibility conference but did not purchase the eligibility documents. Also present at the pre-eligibility conference were representatives of SMLI.
The 33.1-hectare area up for bidding is composed of land presently occupied in part by the Army Support Command and Special Services Unit of the Philippine Army and in part by the Bonifacio Naval Station and Philippine Marine Corps of the Philippine Navy otherwise known as the BNS/PMC/ASCOM/SSU Property.
Under the Bonifacio South master plan, the area will be developed into a medium- to high-density residential and mixed-use complex, with an institutional component and has a gross floor area of 1.355 million sqm.
