SMDC says no cancellation of Kidney Institute lot sale

MANILA, Philippines - SM Development Corp. (SMDC) said yesterday it has not received any notice from the National Housing Authority cancelling the sale of a portion of property the National Kidney Transplant Institute currently occupies on East Ave.

This as SMDC confirmed it won the bidding held last Oct. 16 for the two lots offered by the NHA, equivalent to 1.63 hectares.

“As of this writing, however, the company has not received any official advisory from NHA regarding the cancellation of the sale,” SMDC said.

SMDC issued this clarification following reports the P783-million deal was called off after NKTI management reached an agreement with NHA to revive negotiations involving the property.

The NHA is seeking compensation for the property as the legal owner of the two lots in order to pay off its own obligations to other government-owned agencies.

NHA reportedly owes housing fund agency Pag-IBIG around P840 million with a monthly interest of P1.5 million.

The NKTI, however, has raised a howl over the sale, saying such a move would put its operations in jeopardy.

One of the two areas is currently used as parking space while the other is the subject of a dispute involving alleged illegal settlers.

The two lots were part of the 250-hectare area composed of North Triangle, East Triangle and the Veterans Memorial Medical Center which would be transformed into a new central business district with commercial establishments, residential buildings, institutions, parks and recreational facilities.

The NKTI land was reportedly in the government’s list of public properties for sale to private investors.

A source from the SM Group said they were reviewing their options when asked if they would contest the government’s move to block the sale.

SMDC has been beefing up its landbank to ensure a pipeline of new projects and sustain a double-digit growth in both bottom line and topline. It acquired P2 billion worth of prime properties, most of which are located in Metro Manila. It is also looking to purchase lots in key provincial cities.

Year-to-date reservation sales are now above P30 billion, exceeding its 2012 target of P28 billion to P29 billion.

This year alone, SMDC completed the expansion of existing projects and launched two additional projects translating to 9,403 units valued at P21.9 billion.  These projects include Jazz Tower B, Wind Tower 4, Field Bldg 4, MPST Tower C, Grace Residences and Breeze Residences.