JG Summit eyes Ortigas property in Greenhills

The JG Summit Group of business tycoon John Gokongwei Jr. has expressed interest in acquiring a prime 16-hectare Greenhills property owned by the Ortigas family, which is reportedly scheduled for auction by the end of this month.

JG Summit Holdings Inc. executive vice president Lance Gokongwei told reporters that they would bid for the prized Greenhills lot either on their own (through property subsidiary Robinsons Land Corp.) or through a tie-up with Singaporean property giant United Industrial Corp. whose subsidiary Singapore Land Ltd. is the island state's largest owner and developer of prime office space.

In April last year, JG Summit bought $183 million worth of shares in UIC, a highly diversified conglomerate, in an effort to pursue more business opportunities in the Asian region.

Gokongwei said the area can be redeveloped into a mixed-use commercial and residential community, similar to the developments in the Robinsons' mall chain.

Ortigas & Co., one of the largest landowners in Metro Manila, will put up for sale two large tracts of land -- the 16-ha. Greenhills Shopping Center area and another 19 has. within the Ortigas central business district near the Circumferential Road-5 (C-5).

Estimates by stock analysts show that at a price of P60,000 per square meter, the total 35 has. could fetch as much as P21 billion, easily the biggest real estate deal since the Fort Bonifacio takeover by the Metro Pacific consortium in 1995.

There were reports that the Ortigas clan has not set any minimum bid for the properties and the interested parties can make a "non-binding" offer on Jan. 31. No details of the terms and conditions for the actual bidding were yet available.

The Greenhills lot in San Juan, slowly deteriorating from lack of investment, is still one of the most marketable real estate properties in the country because of its established reputation as a shopping haven and its proximity to prime residential communities. The other property up for grabs is likewise an attractive location since it is within the country's secondary financial hub.

Except for JG Summit, no other group has so far publicly indicated interest in acquiring these properties although only a few have the financial muscle to mount a serious bid. The shortlist includes the Ayala Group and Henry Sy's SM Prime Holdings but several other companies can also compete through a consortium or a partnership with foreign developers.