Cebu gives small investors chance in SRP property

07/12/2010 - THE Cebu City government is keen on selling small parcels of lots at the reclaimed South Road Properties (SRP) to give smaller investors a chance to be part of the development of the property and to spur the growth of commercial establishments in the area.

Cebu Investments and Promotions Center (CIPC) executive director Joel Mari Yu said he received verbal approval from Mayor Michael Rama to do so.

The city is set to publish the rules on the bidding of the property within the month.  

Yu said they are looking at bidding out 10 lots sized at around 3,000 square meters each.

The floor price for the bidding will be at P30,000 per square meter. The property will be reserved for commercial development.

“This will be a very good investment because they will be very close to the development of SM,” Yu said. “This will give the smaller player a chance to be part of SRP.”

The CIPC is a non-profit organization funded by the local government units in Cebu to market the island to investors. The organization is the lead marketing arm for the SRP.

The sale of small property parcels is a break from the traditional wholesale joint venture strategy of the city since the 240-hectare SRP was completed in 2001. So far, only Filinvest Land Inc. (52 hectares) and SM Prime Holdings (32 hectares) have committed to build large-scale development in the property.

Filinvest is in joint venture development with the city.

The company is planning to pour P20 billion worth of development in the area in the next 10 years.

SM is directly purchasing its 32 hectares at SRP for more than P3 billion payable until 2015.

Completed in 2001, the SRP was built with a ¥12-billion loan obtained by the city with the Japan Bank of International Cooperation (JBIC).

The loan is payable until 2020. The property is straddled by the Cebu South Coastal Road which has direct access to Talisay City in the South and a subway connection to the port area and eventually to Mactan Island and the international airport. (Business Mirror)

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