A PROPERTY powerhouse formed by the SM and Ayala groups—the two largest property groups in the country— on Tuesday bagged a 26-hectare portion of reclaimed land at the South Road Properties (SRP) bid out by the Cebu City government.
In a joint statement, SM Prime Holdings and Ayala Land Inc. said their consortium won the said property (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 would build a new central business district in the eastern coast of Cebu.
“Dubbed as the SM-ALI Group consortium, the group benefits from the combined financial muscle, technical expertise and the real estate experience of SM and the ALI Group,” according to the joint statement.
It was noted that the SM-ALI group would 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 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 known for developing Makati as the country’s premier central business district.
Ayala Land affiliate Cebu Holdings Inc. (CHI) is also bringing its local expertise into the 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 consortium said in the statement.
Cebu City is also drawing up a masterplan that seeks to 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. Doris Dumlao-Abadilla