"After careful consideration, the board of directors of BLC has decided not to accept the offer submitted by ALI," MPC president and CEO Ricardo Pascua said.
A week ago, ALI submitted the lone offer to develop the property known as the northern business district, situated north of the S&R Price Club and adjacent to the University Park hosting three major international schools (Manila Japanese School, British School and the International School Manila).
Aside from ALI, two other bidders (Robinsons Land Corp. and the consortium led by Penta Capital Investment Corp., Philodrill Corp., Anglo Philippine Holdings Corp. and Penta Capital Holdings) were pre-qualified by BLC but opted not to submit their respective proposals until the Sept. 18 deadline.
ALI has offered P1.231 billion for the development rights in the said property, which it intends to develop under a mixed use concept, with low-density residential use as the principal project.
Based on ALI’s bid, it priced the lot area at about P6,482 per square meter which ALI officials said was commensurate with the relatively lower densities afforded by the land use.
In January 1995, BLC acquired the right to develop a 214-ha. portion (later reduced to 150 has.) of the former military base at an astounding bid of over P33,000/sqm, besting several other big name bidders, among them ALI.
But Pascua said they could not accept ALI’s bid since certain conditions in the offer were "not in accordance with the terms and conditions stipulated in the disposition program."
"MPC is reviewing all its strategic options with the end view of strengthening its balance sheet and enhancing the values of its businesses," Pascua said.
Last June, BLC announced it would give up its 55-percent development rights over the property to interested bidders as a means to raise additional capital to funnel into the remaining works at the Big Delta area – the centerpiece complex of the Bonifacio Global City.
MPC holds a 69.6-percent interest in BLC, which is the private consortium that controls 55 percent of Fort Bonifacio Development Corp. (FBDC), the corporate vehicle developing the area. As the land owner, the state agency Bases Conversion Development Authority (BCDA) holds the remaining 45 percent in the joint venture.