Ayala Land, Federal Land eye big Fort Bonifacio projects

MANILA, Philippines - Two local property giants Ayala Land Inc. and Federal Land Inc. have expressed interest to compete with developer MegaWorld for the development of an 8.38-hectare government property that is expected to bring in investments of up to P15.6 billion.

In a press conference, Bases Conversion Development Authority (BCDA) president and chief executive officer Narciso L. Abaya said they hope to dispose of two big Fort Bonifacio lots this year.

These are the 8.38-hectare property known as North Bonifacio Lots and a 35-hectare expanse that used to be occupied by the Joint United States Military Assistance Group (Jusmag). Of the two, Abaya said the Jusmag property is expected to bring in more revenues.

The minimum bid price for the North Bonifacio Lots is P2.789 billion while the minimum bid price for the Jusmag Lot is still undetermined.

For the North Bonifacio Lots, Andrew Tan’s Megaworld submitted an unsolicited proposal to buy the property for P33,283.88 per square meter, same as what Metro Pacific paid BCDA some years back for another property at Bonifacio.

The proposal of Megaworld will be used as the minimum bid price for the land which will now be up for a competitive challenge, better known as a Swiss challenge. Under the rules, BCDA can invite other developers to submit their own proposals. Megaworld has the right to match the proposal of other firms.

Abaya said Ayala Land and Federal Land have shown interest in developing the land. Likewise, BCDA said they will invite Chinese developer Shimao to bid. The Shimao Group initially showed interest in investing in the area.

Megaworld’s proposal for the North Bonifacio Lots is a mixed use development of more than 500,000 sqm of gross floor area and is predominantly residential. Investment commitments will reach at least P15.6 billion.

For the Jusmag lot, Abaya said Ayala Land has submitted an unsolicited proposal for the development of the area. He said Ayala submitted its project proposal last year.

However, they have not acted on the proposal because they are waiting for the master plan of the Jusmag property to be completed. Abaya refused to reveal the proposed investment of Ayala.

BCDA vice president for business development Aileen Zosa said the current market price of the Jusmag property is P10,000 to P15,000 per square meter. Zosa said they expect the market price to increase once the study is completed.

“By end of 2009, we would have disposed Jusmag,” Abaya said.

According to Abaya, the procedure for disposing Jusmag will be the same as the North Lots as per the guidelines released in May 2008 by the National Economic and Development Authority (NEDA).