EBU, Philippines - After closing the P2.7 billion deal with the Cebu City government for the purchase of 30 hectares at South Road Properties (SRP), SM Prime Holdings is ready to pour in at least P21 billion in investments here for the next eight years.
SM Prime Holdings president Hans Sy said yesterday that the company will be investing at least P20 billion for the development of the SRP property, plus another P1 billion for the establishment of another mall in the northern part of Cebu.
Sy was in Cebu yesterday to sign the Memorandum of Agreement (MOA) with the City of Cebu led by Mayor Tomas R. Osmeña for the closure of the lot buy negotiation.
Sy, personally turned over a total of P406,456,800.00 to the Cebu City government yesterday and the company now has a total installment payment of about P670 million.
According to Sy, SM will be building one of the 10 largest malls in the world at SRP with 250 thousand square meters allocated for shopping mall development only.
The entire 30 hectares will be a total integrated facility that will host two hotels, a huge convention center of about 20 thousand square meters, high-rise residential and commercial condominiums, a university and a hospital.
“This is the start of the whole new ballgame. We are going roll our sleeves. This is the project we’ve envisioned for Cebu,” Sy said.
The formal ground breaking for the horizontal development of the SM project at SRP is set in the next few months, “probably before the rainy season,” Sy said.
The company will first build the shopping mall in the next two and a half years, and it will be followed by other developments like the construction of convention center (similar to its Manila facility SMX at Mall of Asia), the two hotels and eventually the high-rise condominiums.
Simultaneously, while SM Prime is working on to build the project at SRP, Sy said it will also start the construction of the shopping mall to be located in the northern part of Cebu.
Sy however, refused to elaborate on the northern Cebu shopping mall project, as negotiations with its partner is still on going.
He said SM will be spending about a billion pesos for the construction of SM Shopping mall in northern Cebu.
The P21 billion that SM will be investing in Cebu, excluded the company’s outlay on the soon to open Radisson Hotel, which incurred an investment of P2.8 billion.
According to Sy, Cebu’s well-managed economy is one of the reasons why the company has put its money here.
“We are confident of how the whole Cebu is being managed. We are going to duplicate in Cebu what we’ve done in Manila,” he said.
It took SM Prime Holdings three years to negotiate with the Cebu City government for the purchase of the lot at SRP.
During the special session yesterday, the city legislators agreed to authorize Mayor Osmeña to sign a deed of conditional sale for 304,100 square meters with SM Prime Holdings president Hans T. Sy.
The city legislators passed the proposed resolution of Councilor Jose Daluz III to allow the mayor to sign the deed of sale with Sy after Councilor Edgardo Labella, who chairs the committee on laws of the Cebu City Council, said there is no legal impediment if the city will enter into a conditional sale for the 30.4 hectares at P2,709,712,000.
The unsolicited proposal of SM Prime Holdings Incorporated to purchase the city lots was published in two newspapers of national and local circulation, Labella said, and no other interested party expressed interest to purchase and to challenge the proposal.
The signing of the deed of conditional sale was done inside the SM City Cebu witnessed by almost all of the city councilors and many barangay captains.
City administrator Francisco “Bimbo” Fernandez explained to Vice Mayor Michael Rama that the principal amount of P2,709,712,000 is payable for six years at an interest of five per cent per annum on a diminishing balance.
After paying the P406 million yesterday, SM Prime Holdings is also required to pay another P433.9 million in four installments within this year, while another P417 million will be paid in 2011.
Fernandez said SM Prime Holdings will also pay P400.1 million in 2012, then P383.1 million in 2013. Another P366.2 million will be paid on 2014, and the last payment of P349.2 million will be settled on 2015.
“Wala na tay problema sa pangbayad sa utang sa city gikan sa Japan Bank for International Cooperation kay gawas sa ibayad sa SM, duna pay millions of pesos nga bayad nga atong makolekta gikan sa Filinvest Land Incorporated,” the city administrator said.
FLI also purchased 10 hectares of the SRP and entered a joint venture project with the city for another 40 hectares
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After Signing Deal To Buy SRP lot: SM set to pour P21B into Cebu | The Freeman >> The Freeman Sections >> Cebu News
After Signing Deal To Buy SRP lot: SM set to pour P21B into Cebu
EBU, Philippines - After closing the P2.7 billion deal with the Cebu City government for the purchase of 30 hectares at South Road Properties (SRP), SM Prime Holdings is ready to pour in at least P21 billion in investments here for the next eight years.
Originally Posted by JeffCee
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