SM in Bonifacio South bid

BY BEN ARNOLD O. DE VERA

Manila Times, Friday, 13 August 2010

State-owned Bases Conversion and Development Authority (BCDA) on
Thursday announced that it is looking for a joint venture partner
in developing a portion of the southern section of Fort Bonifacio
after receiving an unsolicited proposal from the SM group of
companies.

BCDA published a notice of invitation for comparative proposals
for the privatization and development of the 33.1-hectare Bonifacio
South property covering the Philippine Army Support Command (ASCOM)
and Special Services Unit (SSU) and the Philippine Navy’s Bonifacio
Naval Station (BNS) and Philippine Marine Corps (PMC).

BCDA said these areas are not part of the properties that President
Benigno Aquino 3rd earlier said would be leased to generate funding
for the modernization of the Armed Forces of the Philippines (AFP).

BCDA said SM Land Inc. has submitted an unsolicited proposal to
develop the area, with an investment commitment of at least P20
billion.

The company’s proposal offers upfront cash worth P2 billion upon
the signing of the joint venture contract as well as secured annual
revenues for 20 years totaling P25.9 billion—f for a present value
of P36,900 per square meter.

It also pledged to replicate military facilities that would be
affected by the disposition.

SM Land’s proposal will be subject to competitive challenge under
Annex C of the National Economic and Development Authority’s (NEDA)
Joint Venture Guidelines.

Under the master plan for Bonifacio South, the BNS/PMC/ASCOM/SSU
lots would be developed into a medium- to high-density residential
and mixed-use complex, with a maximum allowable gross floor area of
1.355 million square meters.