RLC general manager Danilo Ignacio said the company plans to transform the property located in Paco, Manila into a five-floor residential/commercial building.
Ignacio said the building will be limited to just five floors given the requirement imposed by the government to ensure the security of the area which is near the seat of executive power. "Only five floors because of a requirement that buildings near the Palace cannot exceed that limit to ensure security," he said.
RLC offered P562 million for the property of M-Gas in the auction conducted by the state-run National Development Co., six and a half times higher than the P86 million tender submitted by Ayala Land Inc.
The financial bids of RLC and Ayala Land, however, were below the floor price of P637.27 million set by the government.
The board of directors of M-Gas and NDC will evaluate the bids and make the recommendation to the inter-agency Privatization Council to either award the property or not.
The government is hoping to raise at least P785.5 million from the sale of the three M-Gas assets in Manila and Cebu.
RLC is also bidding for the 4.8 hectare Makati property formerly occupied by the International School (IS). The government has set a floor price of about P1.2 billion or P23,000 per square meter.
The property is seen to be ideal for the development of high-rise residential or business complex, given its proximity to the Rockwell Center, an upscale business and residential enclave.
There have been at least two failed auctions for the IS property and the government can resort to a negotiated sale if the bidding will fail for a third time.
RLC is 84 percent controlled by Gokongwei’s flagship JG Summit Holdings Inc. and is positioning to become the country’s major property company. It focuses on shopping malls, office buildings, hotels, and housing.
It intends to steadily expand its shopping mall business by building three to four new shopping malls a year. It also plans to develop leaner commercial centers in provincial cities with a smaller average gross floor area of 25,000 square meters each.