Cebu Philippines South Road Properties (SRP)

Two bigtime investors are optimistic about their plans at the South Road Properties (SRP) despite the tedious process of acquiring lots there and the economic meltdown in the US.

Filinvest Land Inc. (FLI) vice chairman Andrew Gotianun Jr. said they expect to finish negotiating with the Cebu City Government and close a deal on the SRP lot purchase by the middle of January, if negotiations succeed.

The City Government’s JV Selection Committee (JVSC) is now reviewing Filinvest’s proposal to buy 10 hectares of SRP for P2 billion and to develop in a joint venture with the city government 40 hectares more.

”We’ll try to finish it by mid-January,” Gotianun told reporters, saying he is optimistic that FLI can work on the timetable set by the JVSC on the FLI negotiations.

FLI’s offer will be subject to a competitive bidding similar to a Swiss Challenge, where other developers will be allowed to compete and buy the property at a higher price and give the city a bigger share in the joint venture agreement than what FLI offered.

Bigfoot Global Solutions chief executive officer Michael Gleissner also disclosed the additional P50 million in investment that he will put into their entertainment complex on a leased property at the SRP, which was inaugurated last Saturday.

Although Mayor-on-leave Tomas Osmena is “tough” to negotiate with and won’t reduce the price of SRP lots, he said he is still optimistic he can eventually buy lots in the 302-hectare facility.

Despite the economic meltdown in the US, which forced Bigfoot Global Solutions to lay off 40 of its 500 employees in Cebu, Gleissner said he intends to pursue the expansion project at the Bigfoot Entertainment complex.

He has so far invested P150 million for the four sound stages for the international movie studio, and will invest P50 million more to put up retail shops, residential buildings and a boardwalk beside a pond.

The facility stands on a two-hectare lot they are leasing from the city for 25 years.

”We actually preferred to purchase, but as the first investor there, the lease was the option available to start things. The mayor here is a very tough negotiator and he’s not going to give the lot for a cheap price,” he said. – PNA

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Categorized | Government