6 firms challenge SM's P47.9-billion bid

MANILA, Philippines - Six firms, including Gokongwei-led Robinsons Land Corp. (RLC) and Ayala Land Inc. (ALI), have expressed interest in challenging SM Land Inc.’s P47.9-billion bid to develop a 33.1-hectare property in Fort Bonifacio, the Bases Conversion Development Authority (BCDA) reported yesterday.

The BCDA said the other firms that are interested in the 33.1-hectare property are Filinvest Land Inc., Jones Lang La Salle-Leechiu, Megaworld Corp. and Rockwell Land Corp.

“These developments are strong indications of the confidence of private business in the Philippine real estate market and in the Aquino government, as a whole,” BCDA executive vice president Aileen R. Zosa said.

SMLI completed negotiations with the BCDA for its unsolicited bid last month. The proposal will now be subject to a Swiss Challenge, wherein SM Land will bag the contract by January next year if it is able to match counter offers due in November.

SMLI’s proposal offers an upfront cash of P2 billion upon signing of the joint venture contract and secured yearly revenues, totaling P25.9 billion for 20 years. Investment commitment of SMLI for the project stands at a minimum of P20 billion. SMLI shall advance the funds for and undertake the replication of military facilities affected by the development of the property.

The offer translates to a price of P36,900 per square meter for the site along Lawton Ave. or almost P6,000 sq. meter more than what Megaworld Corp. committed for the adjacent Jusmag property.

The 33.1-hectare area up for bidding is composed of lands presently occupied in part by the Army Support Command and Special Services Unit of the Philippine Army and in part by the Bonifacio Naval Station and Philippine Marine Corps of the Philippine Navy.