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The two real estate developers, however, agreed to do separate projects within the property.
“We will plan it together but we’ll do separate projects within the property to maximize the use and have coordinated development,” Ayala Land chief finance officer Jaime Ysmael told reporters on the sidelines of the Philippine Property Awards on Thursday, July 9.
The joint master plan is seen to be completed by yearend, while construction for the Ayala Land’s portion of the property will start “sometime next year.”
“It is not really a joint venture development but only a joint bid. We will carve out areas for both companies,” Ysmael said.
Although the division of the 26-hectare South Road Properties (SRP) in Cebu is still being finalized, Ysmael said SM Prime will likely get the portion that is near the soon-to-be-completed SM Seaside Mall while Ayala Land will get the other side of the property.
For Ayala Land’s portion, Ysmael said the property firm plans to build a mixed-use development, mostly residential condominiums.
Ayala Land said it will partner with its Cebu-based property unit Cebu Holdings to jointly develop this project.
SM Prime executive vice-president Jeffrey Lim said also on the sidelines of the event that the company’s move to jointly bid with Ayala Land for the property will enable it to manage resources for the “huge development.”
Lim added that SM Prime may allot additional capital spending for this new lot, which is on top of the company’s capital expenditures of P66 billion ($1.46 billion) this 2015.
Considering SM Seaside Cebu as “a huge shopping mall development,” Lim said the two real estate giants agreed that they will just build support retail within the acquired South Road Properties lot.
Last month, SM Prime and Ayala Land won the contract to develop the 26-hectare South Road Properties Cebu with a bid of P10.09 billion ($223.54 million).
SM-Ayala Land consortium was the lone bidder for the lot.
The 26-hectare reclaimed property was the the largest portion of the 45.2-hectare SRP which was bid out by the provincial government of Cebu.
The other lot, comprising of 19 hectares, was won by Filinvest Land Incorporated with a bid offer of P6.8 billion ($150.65 million). — Rappler.com