Ayala Land reconsiders P6B-project in Negros Occ

BACOLOD CITY, Philippines — After saying last year that it wants to “disengage” from the project, property giant Ayala Land Inc. said it is still interested to proceed with its P6-billion Capitol Civic Center on the 7.7-hectare prime property of the Negros Occidental provincial government located in this city.

Governor Alfredo Marañon Jr., said he told the Provincial Board at its inaugural session last Wednesday that Ayala Land, is interested again to negotiate, but only if the court case on the said property filed by SM Prime Holdings Inc. Is “resolved with finality in favor of the province.”

In a letter to Gov. Alfredo Marañon Jr. dated July 3, Ayala Land senior vice president Emilio Tumbocon said: While we are open to proceed with the Capitol Project, we remain seriously concerned with the pending legal case as this compromises our ability to acquire clean and undisputed legal title to the property and undertaking the full development of the same, particularly that area subject of our deed of conditional sale, especially since our plans require us to develop the area into components which are intended to be marketed and sold."

Tumbocon, also the company's head for Visayas-Mindanao and Superblock Projects, wrote further: “If you are amenable to our suggestion, we are willing to sit down with you to discuss the manner by which we could proceed with the transaction.”

Tumbocon had also a meeting with Marañon at the Governor's Office last Thursday and, in a press conference last Friday, Marañon, however, said the property is now up for lease only, and is likely to be re-bid.

The 5,000 square meters of the 7.7-hectare property originally awarded to Ayala Land is now under negotiation with the Bangko Sentral ng Pilipinas, the governor said. The remaining property will only be a for long-term lease for 35 years, whose rebidding will be open again for all interested companies, he said.

Marañon noted that a long-term lease is better than a purchase of the property since the lease will only need an approval of the PB, while the latter needs the approval of the Commission on Audit. He added that he expected the case filed by SM Prime against the Capitol to be dismissed soon.

In July 2011, the Capitol's committee on awards and disposal of real properties awarded the sale of 36,587 square meters (3.6 hectares) and the lease of 40,481 square meters (4.04 hectares), surrounding the Capitol, to Ayala Land after SM Prime failed to join an announced negotiated bidding.

SM Prime, insisting it won in the bidding, however petitioned at the Regional Trial Court in Bacolod for an annulment of any negotiated sale and lease of the provincial government property to Ayala Land, questioning the bidding process and subsequently the awarding of sale and lease to Ayala Land.

The case is being heard by RTC Branch 50 Judge Estefanio Libutan, the last hearing of which was last May 2, and that the court is expected to render a decision soon.

Last year, Tumbocon told Marañon that Ayala Land was “unable to pursue the project on account of the delays (in the COA approval) and legal disputes that continue to threaten its implementation, though no fault of Ayala Land.”

In a press conference at the opening of The District North Point last April, Tumbocon said Ayala Land had re-focused on a much larger, 215-hectare development project in Ayala North Point, located in neighboring Talisay City. He said the P6-billion investment in the Capitol Civic Center just “materialized in some ways.”

Tumbocon also expressed appreciation to Marañon and the Negrenses for their continued trust and confidence in Ayala's Capitol project.  (FREEMAN)