FBDC senior vice president for commercial operations Vicente Tinsay III said the lingering weakness of the property market is expected to depress their lot sales and leases by 25 percent to only P1.5 billion this year, from P2 billion last year and P2.5 billion in 2000.
FBDC, a joint venture between the Metro Pacific-led Bonifacio Land Corp. and the government-controlled Bases Conversion Development Authority, is the developer of the 150-hectare Bonifacio Global City – touted as the most technologically advanced urban redevelopment project in Southeast Asia.
Tinsay said aside from a slowdown in inquiries for lot sales, FBDC has suffered a setback in its effort to sell a 19-ha. portion at the northern business district as ALI, a main competitor, offered to pay only a third, or P11,000 per square meter, of what the MPC consortium paid for the same area in 1995, at over P33,000/sqm.
MPC is banking on the sale of the lot as well as its own controlling stake in FBDC to generate enough cash to service its P12-billion debt, about half of which is set to mature this year.
A portion of the projected sales proceeds will be used to finance the vertical development of the Big Delta – a landmark portion hosting the commercial and entertainment complex, office and residential condominium buildings – as well as other growing areas in the property such as the e-Square IT Park ecozone, the iVillage residential community and the retail and service hub of the e-Square Park, Bonifacio Stopover.
The Bonifacio Stopover, in particular, has been bustling with activity as more locators set up shop in the area, located at the Kalayaan flyover entrance to the city. A P35-million expansion project is underway to accommodate more establishments, with already 70 percent of the leaseable space taken.
"The expansion of the existing development is in response to increased commercial interest resulting from the success of the current complex’s clients," Tinsay said.
Right now, the area hosts Shell, Jollibee, Starbucks, Hen Lin, Japs, Ralph’s Wines and Spirits and Kameraworld. The expansion is expected to bring in more establishments such as Chowking, Pizza Hut, Delifrance, Rack’s, Carl’s Jr., Bacolod Chicken, West Lake, Phobac, Grillan, Nacho Fast, Rick’s Diner and Cucina.