FLI proposal for SRP not yet approved

Tuesday, September 30, 2008

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Cebu City Mayor Tomas Osmeña yesterday said that once Filinvest Land Inc. will start developing a portion of the South Road Properties this will surely spur economic development for Cebu.

But the mayor however said that the multi-billion peso business proposal of FLI is not yet “good as approved” although the city government and company have already gone through dozens of discussions.

Although the mayor has not yet approved the proposal, he said that the basic thrust of SRP is to create an entertainment/lifestyle venue that would induce the rich and famous people in other parts of the country or abroad to make Cebu as their second home.

FLI’s proposal to invest at least P80 billion in the SRP complements such thrust as it will build high-rise hotels, residential buildings or condominiums, a medical and retirement facility, and commercial areas, among others.

“It is easy to invest where they live,” the mayor said.

Another thrust of the SRP is to create an environment wherein the rich residents, who will be living in the high-rise structures, do not have to bring their own cars.

Osmeña said that the city will establish a transportation system, wherein new air-conditioned buses will be used to transport the residents in going places within and outside the SRP.

Air-conditioned buses will also be provided if the residents will go the airport. Such will also be provided motorcycle cops and personnel from the Special Weapons and Tactics to ensure the safety of these residents.

“Anyone who invests at SRP is actually lucky. That’s why we are very selective on what are the investments that will be put up at SRP. We are packaging here the future of Cebu,” the mayor said.

FLI is one of the largest real estate companies in the Philippines. It is a publicly listed, full-range residential developer.

FLI’s is offering for an outright purchase of ten hectares worth P2 billion as it also offers a joint venture with the city government to develop a 50 hectare out of the 300 hectare SRP property.

The Cebu South Reclamation Project now called South Road Properties is a project of the government of the Philippines funded by a loan thru the Overseas Economic Cooperation Fund.

In 1995, Cebu City is designated as the implementing agency of the project and a sub-loan agreement was undertaken between the city government and the Land Bank of the Philippines.

The city government is paying P700 million this year as payment of its SRP loan. The city will be paying such amount until the next four years and its payment will be reduced to P250 million in the next 15 years.

So far, the only income of SRP is P25 million which represents the lease payment of Bigfoot for 25 years. — Mitchelle L. Palaubsanon /NLQ