A PROPERTY powerhouse formed by the SM and Ayala groups – the two largest property groups in the country – bagged on Tuesday a 26-hectare portion of reclaimed land at the South Road Properties (SRP) bid out by the Cebu City government.
In a joint press statement, SM Prime Holdings and Ayala Land Inc. said their consortium had won the new landbank at SRP (lot number 8-B-1) with a bid of P10 billion.
The capital city of the province of Cebu is auctioning off reclaimed land at SRP 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.
This consortium is seen to benefit from the combined financial muscle, technical expertise and the real estate experience of SM and the ALI groups, which will co-develop the property pursuant to a joint master plan.
SM Prime is one of the largest integrated property developers in Southeast Asia with its vast portfolio of shopping malls, residential towers, offices, hotels, and convention centers. It had previously established a foothold in this coastal area in Cebu with an ongoing 30-hectare project.
Ayala Land is likewise a leading property developer with a track record in developing large-scale communities with residential, commercial and leisure uses. It is best know for developing Makati as the country’s premier central business district.
Ayala Land’s affiliate Cebu Holdings Inc. (CHI) is also bringing in its local expertise in this consortium, having developed two of Cebu’s prime business and lifestyle districts – the Cebu Business Park and the Cebu I.T. Park. Its masterplanned estates are the preferred locations for traditional office, business process outsourcing office and shopping center leasing. CHI offers the most number of units across a wide range of market segments in Cebu.
“With the resources and expertise of these real estate companies, this newest development at the SRP is planned as another showcase of integrated, master planned and sustainable developments that will bring in more investments and jobs for the local economy,” the joint statement said.
Cebu City is also drawing up a masterplan that seeks to interconnect all the plans of the investors participating in the development of SRP.