The Philippines may have lost a multi-billion dollar Chinese investment as real estate developer Shimao Property Holdings said it will be building a hotel in Malaysia.
An industry insider told The STAR that the Shimao Group has shifted its interest because of the 60-40 rule. As per the Constitution, foreigners are not allowed to own land.
Trade Secretary Peter B. Favila denied the news. “The Shimao Group is still interested in locating here. They are in close contact with BCDA (Bases Conversion Development Authority),” Favila told The STAR.
Ambassador Francis Chua, special envoy to China, brushed aside the report, saying that Shimao is a big company that is interested in a number of countries.
For its part, BCDA said they have rejected the proposal of Shimao for the development of the Fort Bonifacio property. Instead, BCDA vice president Aileen Zosa said they will bid out the land.
“We encourage Shimao to join the bidding,” Zosa said.
Zosa explained that they rejected the unsolicited proposal of Shimao because the agency does not have the solid legal basis to undertake Swiss challenge on Shimao’s unsolicited proposal.
The property, collectively called North Bonifacio Lots, covers 8.38 hectares including roads and open/green spaces.
“With the prevailing momentum of development in the area, we are expecting the North Bonifacio property to fetch at least P34,000 per square meter on a rawland basis and more than P100,000 per square meter on a developed basis,” Zosa noted.
BCDA and Shimao have signed a memorandum of understanding (MoU) for the joint development of a sizeable portion of land in the Bonifacio Global City, Taguig.
The share of BCDA in the investment is the piece of land in Fort Bonifacio.
The Shimao Group is the owner of the Le Meridian Hotel, the Royal Meridien Hotel – the tallest structure in Shanghai, China and the Grand Hyatt Hotel also in Shanghai. The group has more than 10 luxury hotels in China.