Back in the saddle

In one fast paced week, Manuel V. Pangilinan scored a three-point shot that became the winning basket for him and made it clear why his initials are MVP.

First, as he promised, MVP was able to put together a deal to sell Fort Bonifacio that was superior in terms of the Gokongwei offer for the property. Furthermore, it allowed Metro Pacific to partner with one of the strongest forces in property development, the Ayalas and the Camposes, thus ensuring the growth of the Bonifacio property. And finally, proving to critics and even First Pacific that he was not out to block the deal, he was out to get a better deal for his parent firm.

Second, as a result of this deal, MVP has started to gain back the trust, confidence, and support of the top honchos of First Pacific. Though sources claim some First Pacific underlings still try to take potshots at MVP, the meeting held last Wednesday in Hong Kong has the board including Anthoni Salim supporting and approving the Ayala-Campos proposal engineered by MVP. This should pave the way for an eventual come back of MVP.

And thirdly, the Metro Pacific board yesterday approved the Ayala-Campos deal and both camps signed a memorandum of agreement, thus sealing the deal.

First Pacific gets a better deal (and $90 million in cash), Fort Bonifacio gets strong partners, and MVP proves that he always had the best interest of his First Pacific family in mind. What a difference a week makes.

What‘s the point

It‘s been almost one year now since Metro Pacific Corp. and the Bases Conversion Development Authority, developers of the ritzy Pacific Plaza Towers in the Bonifacio Global City, filed a suit against contracts SAEI-EEI and the Yuchengco-owned Malayan Insurance Company for the myriad of delays incurred during the twin towers‘ construction.

Just last month, the Department of Trade and Industry‘s construction arbitration commission awarded to the Pacific Plaza Towers Group a whopping P634 million in damages against SAEI-EEI and their insurer.

Finally, the issue is settled – or so we thought.

In a move that still boggles the developers of Pacific Plaza, operatives of SAEI-EEI not only appealed the ruling, they also prompted a lis pendens from the Taguig registrar over the towers‘ units. In short, they tried to hold the project hostage to their own scurrilous claims.

The lis pendens has been declared illegal by the courts. But why hasn‘t the local registrar in Taguig lifted it yet. Hmmm.

How could SAEI-EEI and the Yuchengcos possibly think that they were going to argue that they weren‘t at fault – especially considering that among the residents of Pacific Plaza Towers are the most savvy developers, architects, and designers in the country, and understand when a delay is a credible one or when it caused by simple laziness on the part of the contractor?

A source at Pacific Plaza management revealed that they just want to put the issue behind them, in which case it begs the question of why SAEI-EEI and the Yuchengcos have yet to approach Pacific Plaza Towers to sit down for an amicable settlement instead of fighting a case they know they will eventually lose.

You see, the two sides still need to sit down and discuss a final accounting of the remaining finishing works which were completed at management‘s expense. If one has just been ordered to pay P634 million in damages, wouldn‘t it be more practical to take the initiative to approach the other side and seek an amicable settlement?

If you were a contractor responsible for one of the country‘s most high-profile projects, wouldn‘t you want your reputation untainted?

Happily, despite this issue, nearly 80 percent of the project has been sold and is now home to the greatest concentration of wealth in the Philippines.

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