Property dispute stalls CityMall development

CEBU, Philippines - Part owners of the Ludo and LuYm are reiterating their call to Double Dragon Properties Corporation to desist from pursuing its plan to construct a mall on a property with pending court litigation.

The 18th division of the Court of Appeals of the Philippines recently ordered for a review of the property in dispute and remanding to the lower court.

"Considering the issues involved are factual in nature, such issues are best addressed to the Special Commercial Court, which has the power to try this case and conduct hearings, receive evidence and perform any and all acts necessary to resolve factual issues raised in intra-corporate cases falling within its original, exclusive jurisdiction," indicated a copy of a CA promulgation dated December 16, 2014.

Double Dragon Properties, jointly owned by Jollibee Foods Corp. chairman Tony Tan Caktiong and business partner Edgar “Injap” Sia II, earlier announced to build a Citymall on the disputed 1.1 hectare property.

The group of Kelly Lu Ym, who owns 33.22 percent of the entire family's real estate portfolio in Cebu, questioned the legality of the deal backed by the recent decision of the CA.

Legal counsel Negley T. Villanueva, who represents Kelly Lu Ym, said in an interview yesterday, that the side of Kelly Lu Ym has filed a motion for reconsideration dated January 27, 2015 to the CA, nullifying the transfer of the 1.1 hectare located at N. Bacalso Avenue to Dunes and Eagle Development Corporation, the company that Double Dragon has entered a 30-year lease deal.

The Freeman tried to get the side of Double Dragon Properties but was only informed that no one was available to issue a statement on the matter.

Villanueva added that although heavy equipments are already within the property, which signals that construction would start anytime soon, they learned from the Office of the Building Official that there had been no application for construction permit in the particular area.

The Ludo and LuYm families, who have over P2 billion total assets formerly managed by dissolved Ludo Development Corporation (LudoDev), are now resolving the equal and fair distribution of their properties in court.

Kelly LuYm, claimed that any party cannot enter any business deals pending court litigation.

Recently, CityMall Commercial Centers Inc., owned by Double Dragon Properties Corp. and SM Investments Corp., announced that it will build another CityMall in Cebu after bagging a long-term lease to a prime lot along a major national road in the province.

In a disclosure to the Philippine Stock Exchange last year. DoubleDragon said its 66-percent owned subsidiary CityMall Commercial signed a 30-year lease agreement with Dunes and Eagle Land Development Corporation.

Sy-led SM Investments Corp. owns 34 percent of CityMall Commercial.

Although,  LudoDev was already dissolved via court order in 2006, property and asset distribution is yet to be determined by the court,

All properties of the LudoDev including Mango Square, and other estates within Cebu City, Mactan Island, Iligan and Manila had been placed under the custody.

The prime property is sandwiched by Elizabeth Mall and the Cebu South Bus Terminal, and a few meters away from the soon-to-rise Cebu City Medical Center Hospital.  (FREEMAN)