The Bases Conversion and Development Authority (BCDA) has opted to dispose of an upscale property in Taguig City via an open competitive bidding, instead of engaging in a “Swiss Challenge.”
BCDA president and CEO Arnel Paciano D. Casanova said it would be “more advantageous” for the government to conduct open bidding for its land assets and “unlock” the value of the property to real estate developers.
The state corporation said that it has informed the original proponent, SM Land Inc. (SMLI), of the change in proceedings, and invited SMLI to participate in the open bidding for the Bonifacio South property.
In a statement issued Thursday, BCDA said it decided to sell the property through open competitive bidding following a directive from the Office of the President.
BCDA has not set the date for the open auction, but its board of directors is soon expected to approve the terms of reference for the forthcoming sale.
The property is at the southern side of Bonifacio Global City and is located between Newport City and McKinley West, near Forbes Park.
The property used to be occupied by the Army Support Command and Special Services Unit of the Philippine Army, the Bonifacio Naval Station, and the Philippine Marine Corps of the Philippine Navy.
In August 2010, the BCDA published the invitation to real estate firms to submit comparative proposals to challenge the unsolicited proposal of SMLI for the 33.1-hectare asset.
Six firms expressed interest in the property: Ayala Land Inc. (ALI), Filinvest Land Inc. (FLI), Jones Lang La Salle-Leechiu (JLL), Megaworld Corp., Robinsons Land Corp. (RLC), and Rockwell Land Corp. (Rockwell).
But later that year, the proceedings were put off due to a policy review by the Office of the President on the lease versus joint-venture/sale mode and other issues on relocation and replication, among others.
Last August 15, the BCDA wrote to SMLI vice president David Rafael, saying that “the Office of the President has decided to put the development of the subject property on public bidding. In this light we regret to inform you that we are terminating the proceedings on the competitive challenge and shall be returning the proposal security.”
According to Casanova, transparency is “the heart of public bidding, [and] will ensure that everything is above board.”
This will encourage “the best bidders to compete in a level playing field,” he added.
Casanova noted that the recent participation of top real estate developers in the bidding of the 74-hectare portion of the Food Terminal Inc. property in Taguig City reflected the healthy and sound state of the country’s real estate sector. Ayala Land Inc. bested the other developers in acquiring the FTI property.
Casanova said BCDA’s Bonifacio South property would elicit strong interest from the country’s top developers due to the strategic location and business potential of the area.