BACOLOD CITY ,Philippines – Ayala Land Inc. (ALI) won the bidding Friday for the sale and lease of a 77,068-square meter prime property of the Negros Occidental provincial government in this city.
ALI has offered to acquire on a freehold basis 36,587 sqm of land at P20,500 per sqm and on leasehold basis 40,481 sqm of land at P73 per sqm per month for 50 years, its vice president, Jose Emmanuel Jalandoni, said.
The provincial government had placed the floor price (appraised value) of the property at P19,500 per sqm.
ALI’s purchase of the land alone is estimated to cost P750.03 million.
Jalandoni said they will invest P6 billion for the development of the seven-hectare property into a “Capitol Civic Center,” to rise as the “heart of business, cultural and governance of Negros Occidental.”
SM Prime Holdings, which was the first to submit an “unsolicited intent” to purchase or lease the property last month, did not submit its proposal in Friday’s bidding.
Governor Alfredo Marañon Jr., who also chairs the provincial government’s Committee on Awards and Disposal of Properties, said, “SM Prime lost in the bidding by default. Maybe, they (SM) are not interested (anymore).”
SM Prime had filed Wednesday a petition for a temporary restraining order (TRO) to prevent Marañon and the Committee on Awards from entering into a negotiated lease and sale of the property.
A hearing was held Thursday morning at the Regional Trial Court Branch 50 in Bacolod and the court released its decision Thursday afternoon, denying SM’s petition.
Judge Estefanio Libutan Jr. of RTC Branch 50 denied the TRO asked by SM Prime Holdings saying, “the court should not intervene in the bidding process of the provincial government for so long as it follows the legal process.”
With this ruling, the Committee on Awards proceeded with its scheduled acceptance of negotiated sale and lease proposals Friday, Maranon said.
Maranon said he is thankful that the court gave due course for the interest of the provincial government, adding that the bidding process was conducted to the best interest of the people and the province of Negros Occidental.
He said the committee declared the second bidding on July 7 a failure after both SM Prime Holdings and ALI submitted bids below the appraised value of the property.
But Vincent Patrick Bayhon, lawyer of SM Prime Holdings, earlier said they maintain their position that they have won the July 7 bidding as theirs was the superior bid.
He pointed out that their bid was higher at P18,888 per sqm than ALI’s bid at P17,719.50 per sqm, during the second bidding.
“If you follow the rules, the highest should be declared as the winner for the auction. We are entitled to be declared as the winning bidder,” Bayhon said.
Bayhon also argued that “there was no failure of bidding on July 7 and the court will have to decide that.”
As for Ayala’s proposed developments, the Capitol Civic Center “will be an integrated mixed-use civic and commercial district that will combine the center of government with commercial and residential uses, making it the growth center of Metro Bacolod and Negros Occidental,” Joel Luna, ALI’s vice president, said.
“The project will have a lifestyle center, encompassing retail, office and hotel, a multi-use convention and events venue, and a residential commercial zone,” he said.
Jalandoni said they will initially pour in P3 billion for the next two years of development, and more in investments for the project in the succeeding years.
He said the development of the area will start as soon as the contract and the deed of sale are signed by both parties.
An additional investment of P25 million will be earmarked for the development of the Capitol Park and Lagoon as part of the transformation of the Capitol district, he said.
“This will be the biggest investment in the province so far. It will definitely change the landscape (of Bacolod). It must conform to the culture and aesthetic beauty of the Negrosanon,” Marañon earlier said.
As stated in its technical proposal, the key principles that will govern the planning and development of the Capitol Civic Center will revolve around five major themes: smart and green, pedestrian and transit orientation, diversity of activity, youth and vibrancy, and prestige and civic pride.
The governor earlier said that the winning bidder will be determined on which company can make the better offer for both the technical and financial criteria of the bid.