MANILA, Philippines - The Bases Conversion and Development Authority (BCDA) will offer to international developers the 33.1-hectare South Bonifacio Point to generate for the government at least P13.3 billion in upfront cash and 45 percent annual share in the revenues to be derived from the projects that would rise in the area.
The property was earlier the subject of an unsolicited offer from the SM Group but the Office of the President directed the BCDA to place it on competitive bidding consistent with the Aquino administration’s direction to shun unsolicited offers.
Arnel Paciano D. Casanova, president and CEO of BCDA, said that although there was a court petition to stop the state from bidding out the property, they were instructed by Malacañang to proceed.
“There is no injunction yet so there is no legal impediment to proceed with the bidding,” Casanova said.
Aileen Zosa, BCDA executive vice president, said the international publication of the invitation to bid would begin on December 21, with the actual bidding expected in February.
She said BCDA would demand a minimum bid of P40,000 per square meter for the upfront cash.
The cost will, however, go up to as much as P54, 000 per square meter if the cost of the replication of the military facilities in the area and the development costs are put in.
The property currently houses the Bonifacio Naval Station (BNS), the Army and the Marines.
Dean Santiago, BCDA vice president for business development and operations, said the BNS would be transferred to the property opposite its current location, while the Army would be moved to Camp Aquino in Tarlac and the Marines to Camp Riego de Dios in Cavite.
Casanova said they would employ the same model used for the Bonifacio Global City (BGC), in which the BCDA incorporated the Fort Bonifacio Development Corp. (FBDC) with joint-venture (JV) partners Ayala Land and Evergreen Holdings.
With this, aside from the P13.3 billion in upfront cash, the BCDA would also get a minority 45-55 percent sharing with the future JV partner for the South Bonifacio Point.
The property would be converted into a mixed-use complex, with the private-sector partner spending for the development.
“The JV will generate more dividends for the government so believe this is a good business decision for us,” Casanova said.
In the BGC project, Casanova said BCDA has already received a total of P30 billion from FBDC since 1995 and about P500 million in yearly dividends.
He said while South Bonifacio will also give continuous cash flow for BCDA, it would be smaller than what the FBDC is remitting since BGC covers a much bigger area of 150 hectares.
Zosa said that with the economy performing well, it is a good time to attract more bidders from different parts of the world. “As they say, we are now the darling of investors.”
Also, Casanova said inviting players would result in better value for the property.