MANILA, Philippines — The Court of Appeals (CA) has given the green light to the multibillion-peso development project of a consortium of SM Prime Holdings Inc. and Ayala Land-Cebu Holdings Inc. at the South Road Properties (SRP) in Cebu City.
In a 14-page decision released yesterday, the 18th division of the appellate court affirmed a 2015 ruling of the Cebu regional trial court (RTC) that dismissed the petition assailing the sale of the 45.2-hectare portion of SRP to the consortium by the city government in 2014.
The CA dismissed for lack of merit the petition of lawyer Romulo Torres seeking a reversal of the RTC ruling.
It affirmed the legality of the sale of the property to the consortium for P16.7 billion.
“All things considered, the Court finds no grave error in the Trial Court’s dismissal of the petitioner-appellant’s action for declaratory relief. Apparently, the elements of such action are wanting in this case necessitating its dismissal,” read the ruling penned by Associate Justice Dorothy Montejo Gonzaga.
It rejected the argument of the petitioner that the sale of the property violated City Ordinance 2332 in 2012, which requires protection of the SRP from “unlawful and unauthorised transactions and dealings,” and required the specific prior approval from the city council to sell, dispose, transfer or convey any of the properties in the SRP.
The CA held that the Resolution 130418 approved by the Cebu City Council in 2014, which authorized the sale of the property, did not violate such ordinance.
The appellate court also denied the joint motion for a compromise agreement filed by the petitioner and outgoing City Mayor Tomas Osmeña, who also opposed the transaction.
It explained that petition was directed against the administration of Osmeña’s predecessor, Michael Rama.
In 2015, Rama sold 45.2 hectares of the SRP lot at P16.7 billion to the consortium for a 26.3-hectare property, while the 19.2-hectare property was awarded to Filinvest Land Inc. After that, these buyers already paid P11 billion to the city and they are expected to settle the remaining balance this year, as agreed in the deed of sale.
But when Osmeña took over city hall in 2016, he questioned the legality of the transaction and refused to accept the consortium’s payment for the sale.