Cebu City bids out 45.2 hectares of SRP lot

By Kristine B. Quintas/JMO (The Freeman) | Updated June 8, 2015 - 12:00am

CEBU, Philippines- The city government is set to bid out 45.2 hectares of land at the South Road Properties to help fund this year’s P13.4 billion annual budget.

Investors and developers can participate in the bidding on June 30 at the fourth floor of the legislative building starting at 2 p.m.

The 45.2 hectares includes Lot No. 8 with a total land area of 26.3 hectares located near the Calungsod template and consolidated lots No. 7 and No. 17 consisting of 19.2 hectares located beside the SM Seaside Mall.

The City Council has authorized Mayor Michael Rama to negotiate for and dispose of the lots through public bidding.

The property is sold at P20,000 per square meter, which is P4,000 higher than the recommended floor price of the City Appraisal Committee.

The city projects P9 billion in revenues, which is on top of the P2.5 billion to be generated from the real property taxes excluding the collections from business taxes and regulatory fees.
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The projected revenue is expected to pay the city’s outstanding obligation of around P3 billion with the Japan International Cooperation Agency, which was used to develop the 300-hectare SRP.

Part of it will also be used to construct the new building of the Cebu City Medical Center, to accommodate the Asia-Pacific Economic Cooperation this year and the International Eucharistic Congress in 2016; improve the city’s traffic, drainage and storm water systems; and fund other priority infrastructure projects.

Based on the terms and reference, the qualified bidders shall be Philippine Corporations with a total asset of at least P25 billion based on the 2012 financial statement. They shall have deposited P3 billion three days from the submission of bid.

Bidders must also have engaged in real estate development for at least five years from submission of bid. Furthermore, for that certain period, they must have constructed mixed used projects consisting of 300,000 square meters – 200,000 square meters of which consists of commercial and/or office space and 100,000 square meters dedicated to residential use.

The winning bidders will be required to give a down payment equivalent to 50 percent of the price upon the awarding of the contract. The remaining 50 percent will be settled within a maximum period of three years “paid in equal annual installments with six percent per annum.”

The buyer will pay all taxes and fees for the transfer of title, except transfer tax.

All bids should be accompanied by a bid bond in the form of Cash or Manager’s Check in an amount equivalent to 10 percent of the bid amount, which form part of the down payment.

Bidders bond of all losing bidders will be returned when the award is concluded.

With the bid bond, Atty. Jose Daluz III, chairman of the Technical Working Group of the Bids and Awards Committee, said the city will automatically collect an estimated of P1 billion on June 30.

“Sigurado nata nga naa ta’y P1 billion collection kay ang modaug ani, part nato sa earnest money,” he said.

The city has posted its invitation to bid in three local and national newspapers of general circulation, city website, Cebu Provincial Capitol Bulletin Board, City Hall Bulletin Board and Post Office Main Bulletin Board on May 30, June 5 and June 12, respectively.

The bid documents are available for sale on June 15 to 26 at the seventh floor of the executive building at the City Hall.

On June 18, a pre-bid conference will be conducted at 2 p.m. at the 4th floor of the legislative building to clarify matters on the terms and reference. Submission and receipt of bids will commence on June 30 from 10 a.m. to 1 p.m. also at the legislative building.

The bidders must present a conceptual design upon the conduct of the public bidding.

The project area shall consist of 65 percent “buildable zone” while the 35 percent will be designated for open spaces including parks, playgrounds and roadways. It has a minimum floor to area ratio of 1:3.5 mixed use, wherein 70 percent of which will be intended for commercial/or office spaces and 30 percent for residential use.

Daluz said the terms and reference will still be scrutinized by the participating bidders.

“After pre-bidding, if naay clarification and amendment, mag-supplemental bulletin ta sa additional terms as agreed sa participating bidders,” he said.

Daluz said the city will choose the bid that will be most advantageous to the government.

“For instance, an investor bids P26,000 per square meter and made a down payment of 50 percent while the rest will be paid quarterly in the next three years at six percent while another investor bids P25,900 per square meter in cash. We will accept those superior bids like payment in cash without installment,” he explained.

Robinsons Land Corporation, Filinvest Land Inc. and SM Prime Holdings Inc. have expressed interest to acquire parcels of land at the SRP, particularly Lot 8-B, which is located near the Calungsod templete. It has an area of approximately 263,384 square meters and costs around P5.4 billion. (FREEMAN)

Source: http://www.philstar....
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