Federal’s offer for SRP gains support

Saying it’s about time, former Cebu City mayor Michael Rama supports the intention of a Manila-based firm to buy a portion of a three-hectare lot in the South Road Properties (SRP).

Last year, the City Council authorized Mayor Tomas Osmeña to dispose of three hectares (has.) in the SRP through public bidding for at least P110,000 per square meter (sq.m.) or P3.3 billion.

Federal Land has offered to buy the 29,881-sq.m. Lot 1-F-8 at P115,000 per sq. m. for a total purchase price of P3.4 billion.

According to Rama, this will pave the way for a continuous increase in land value in the SRP.

“That’s good for the city if that’s going to materialize,” he told reporters in a press conference yesterday.

In the preliminary conceptual design that Federal Land submitted, the development includes an enclave composed of nine residential towers surrounded by street-level shops and restaurants.

Five of the nine residential towers will have 26 floors while the remaining four will have 36 floors.

Earlier, Mayor Osmeña said that with the development, more developers are expected to express interest to buy SRP lots.

“I support the incumbent mayor’s move to support that idea. But do not make a mistake of entering into contracts that are highly disadvantageous because no matter what, what is primary is the interest of the Cebuanos. But please, honor also the previous contract,” he said.

The former mayor is referring to the sale of the SRP lots to the consortium of Ayala Land Inc., SM Prime Holdings Inc. and Filinvest Land Inc. (FLI). The City awarded the lot to the consortium last July 21, 2015. The deal was closed for P16.76 billion.

Of the 45.2 hectares opened for bidding, 26 has. were bought by the consortium of Ayala and SM, while 19.2 has. were bought by Filinvest.

In May 2016, before assuming office, Osmeña called the transaction “questionable” and announced that he would revoke the sale of the property.

Last February 2017, FLI rescinded its purchase.

But Rama, though, stood pat that the transaction with the consortium was transparent since it went through a bidding.