BCDA seeks challengers to SM bid

By Abigail L. Ho

Philippine Daily Inquirer, Friday, August 13, 2010

THE BASES Conversion and Development Authority is seeking
challengers to the unsolicited proposal of SM Land Inc.
for a joint venture to develop a 33.1-hectare property in
Bonifacio South.

The property up for development is composed of parcels of
land currently occupied by the Army Support Command (Ascom)
and Special Services Unit (SSU) of the Philippine Army and
the Bonifacio Naval Station (BNS) and Philippine Marine
Corps (PMC) of the Philippine Navy.

The Bonifacio South master plan provided for the development
of the BNS/PMC/Ascom/SSU area into a medium- to high-density
residential and mix-use complex, with a strong institutional
component and a maximum allowable gross floor area of 1.355
million square meters.

The entire property is located along Lawton Avenue, separated
from the Jusmag property by the National Mapping and Resource
Information Authority area and a six-hectare strip of land
retained by the Philippine Army.

In its unsolicited proposal, SM Land offered an upfront cash
payment of P2 billion upon the signing of the joint venture
contract with the BCDA.

It also committed secured yearly revenues amounting to P25.9
billion for 20 years or P36,900 per square meter.

Also, SM Land also offered to advance the funds needed to
replicate the military facilities that would be affected by
the development.

No amount has been set for this part of the venture, as the
BCDA was still determining the cost of the replication project.

SM Land’s proposal, however, was still subject to competitive
challenge under Annex C of the National Economic and Development
Authority Joint Venture Guidelines.

The BCDA expects yields from the Bonifacio South development to
be significantly higher than third-party appraisals of the property.

An appraisal done on the property last year placed its value at
only P8,000 per square meter, vis-à-vis SM Land’s offer of P36,900
per square meter.