Ayala Land wins bid vs SM Prime

BACOLOD CITY, Philippines  — Ayala Land, Inc. yesterday won over SM Prime Holdings on the "negotiated bidding" for the sale and lease of the 7.7068-hectare (77,068 square meters) prime property of the Negros Occidental provincial government in this city.

Ayala Land vice president Jose Emmanuel Jalandoni said the company offered to acquire on freehold basis 36,587 square meters of land at P20,500 per square meter and on leasehold basis 40,481 square meters of land at P73 per square meter per month for 50 years.

The provincial government had placed the floor price (appraised value) of the subject property at P19,500 per square meter. SM Prime Holdings, which was the first to submit an "unsolicited intent" to purchase or lease the said property last month, did not submit its proposal yesterday.

Governor Alfredo Maranon Jr., head of the committee on awards and disposal of properties, said, "SM Prime lost in the bidding by default. Maybe, it was not interested." 

SM Prime filed Wednesday a petition for a temporary restraining order (TRO) to prevent Maranon and the awards committee from entering into a negotiated lease and sale of the property. The following day, Judge Estefanio Libutan Jr, of the Regional Trial Court-Branch 50 denied SM's petition.

"The court should not intervene in the bidding process of the provincial government for so long as it follows the legal process," said Libutan in his decision.

Following the court's ruling, the committee proceeded with its scheduled acceptance of negotiated sale and lease proposals yesterday, said the governor, adding that it was done to the best interest of the people and the province of Negros Occidental.

Maranon said the committee declared the second bidding on July 7 a failure after both SM Prime and Ayala Land submitted bids below the appraised value of the 7.7068-hectare property.

Vincent Patrick Bayhon, lawyer of SM Prime, said Thursday the firm maintained its position that it won the July 7 bidding as its bid was the superior one, contending that it was higher at P18,888 per square meter against Ayala's P17,719.50 per square meter.

"If you follow the rules, the highest should be declared the winner for the auction. We are entitled to be declared the winning bidder," Bayhon said. "There was no failure of bidding and the court will have to decide for that."

Ayala Land is planning to invest P6 billion for the "Capitol Civic Center–an integrated mixed-use civic and commercial district combining the center of government with commercial and residential uses, making it the growth center of Metro Bacolod and Negros Occidental," said Joel Luna, one of its vice president.

"The project will have a lifestyle center, encompassing retail, office and hotel, a multi-use convention and events venue, and a residential commercial zone," Luna said, adding that an additional investment of P25 million will be earmarked for the development of the Capitol Park and Lagoon.

Maranon told The FREEMAN: "This will be the biggest investment in the province so far. It will definitely change the landscape (of the province). It must conform to the culture and aesthetic beauty of the Negrosanon."

The key principles to govern the planning and development of the Capitol Civic Center will revolve around five major themes: Smart and Green, Pedestrian and Transit Orientation, Diversity of Activity, Youth and Vibrancy, and Prestige and Civic Pride.

 (FREEMAN)