Cebu City Mayor Michael Rama receives the P109 million check from SM Mall manager Sherry Tuvilla.
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CEBU, Philippines - SM Prime Holdings Inc. yesterday turned over to Cebu City a check for P109 million representing its third payment for the purchase of 30.41 hectares at the South Road Properties.
SM has paid the city roughly P896 million so far and will be paying the rest of the P2.7 billion deal in six years.
Last January, SM paid the city P406 million after signing the conditional sale.
The company also paid a P270.9 million bid bond last year which became part of the down payment. These two payments represent 25 percent of the total amount they owe the city government.
The 75 percent balance or P2,032,283,000 is payable in six years. SM will be paying the city in a quarterly installment basis.
The first quarterly payment was done last April where SM paid the city a total of P110,082,050. Yesterday’s payment was exactly worth P109,023,568.75.
Another payment will be made in October and December to complete the P433 million they have to pay for this year.
SM plans to invest P21 billion for a mixed use development project at the SRP.
The project will not only include a mall that is 10 times bigger than the existing one at the North Reclamation Area, but will also include a two-hectare convention center, which will be the biggest in the Visayas, two hotels and a residential building or condominium.
They also want to build a university and a hospital as part of the long-term plan.
SM targets the mall, convention center, hotels and condominiums to be completed within eight years depending on the company’s financial capacity and the demand for these
[COLOR=blue ! important][COLOR=blue ! important]developments[/COLOR][/COLOR].
In the next years, developments at the SRP that people may look forward to include the plan of Filinvest Land Inc. to put up an urban commercial district consisting of a hotel, office spaces, high-rise condominiums, medium-rise residential area and a white sand beach.
These are part of the 40-heactare joint venture agreement of Filinvest with the city government for a P25 billion development project which will be completed in 25 years.
– THE FREEMAN
SM Prime pays city P109 million
Originally Posted by cobraKing
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