CEBU CITY, Philippines—The capital city of the province of Cebu is set to bid out by next year 45 hectares of reclaimed land, which form part of Cebu City’s South Road Properties, for about P9 billion.
The move is in line with the city’s plan to bring in new investors who will build a new central business district in the eastern coast of Cebu.
During the launch of Filinvest Land Inc.’s revised masterplan for its “City de Mare” estate—the first development in Cebu City’s South Road Properties—City mayor Michael Rama said the city would conduct an open bidding for more parcels of reclaimed land.
But unlike the 40-hectare estate being developed by FLI through a joint venture agreement with the city, which will keep a 10-percent economic interest in the development, the next batches of reclaimed land would be disposed of through an outright sale.
The floor price was set at about P20,000 per square meter, Rama said. Based on this, the 45-hectare property is expected to fetch a bid of at least P9 billion.
The SM property group has likewise established a foothold in this coastal area with a 30-hectare project.
Rama said the next batches of reclaimed land that would be offered to investors by the first quarter of next year would be right beside the SM estate. He said there were at least four groups that had expressed interest to participate in the bidding. He, however, refused to identify these groups.
Asked whether FLI would be expanding its presence in SRP by bidding for more parcels of land, FLI president Josephine Gotianun-Yap said her team would “take a look at it.”
In the bidding next year, two parcels of land will be offered—26-hectare and 19-hectare blocks, Rama said. At the same time, he said the city was drawing up a masterplan that would “interconnect” all the plans of the investors participating in the development of SRP.
Of the 300-hectare SRP project, 240 hectares were already reclaimed and ready for development while 60 hectares have yet to be reclaimed, Rama said.