SMPHI waits for control over SRP

SM Prime Holdings Inc. (SMPHI) president Hans Sy has said the company is “willing to wait” on its plan to take full control over the 295-hectare (ha) South Road Properties (SRP) in Cebu City.

Sy said SMPHI, the company behind SM super malls, will not abort plans of long-term development strategies for SRP to signify its confidence over Cebu’s bullish economy.

”We can’t make any move yet because we are still awaiting a formal position. There’s no firm offer. It has not reached to the level if we are developers or what. There are many things to settle like the master plan, price, technical details, etcetera, but we are willing to wait,” Sy told reporters.

Sy was in Cebu Friday for the soft opening of the SM City Cebu Northwing, which is a five-level annex to its existing 13.8-ha property at the Cebu North Reclamation Area.

He said the company’s multi-billion-peso offer, which includes “taking over the full obligation of paying” for the balance of Cebu City Hall’s P6.3-billion loan with the Japan Bank for International Cooperation, involves a mixed-use facility and an information technology (IT) park at the SRP.

”It will be another Mall of Asia type of development,” he said.

Capitalizing on the burgeoning growth of the IT sector, SMPHI initially offered a joint venture with the City Government to develop an IT Park within a government-owned lot, similar to that of the Cebu Provincial Government and the Cebu Property Ventures and Development Corp. (CPVDC).

CPVDC, a subsidiary of Ayala Land Holdings Inc., developed the Asiatown IT Park in Barangay Apas, Cebu City.

SMPHI earlier mulled plans to invest P2 billion for the construction of two more malls in the province. The company was eyeing the SRP as a feasible site for one of its malls.

He said the construction of the two malls, which are expected to cost P1 billion each including the land value, will begin once SMPHI finds the lot for the projects. The plan is included in the project to put up four more additional malls in the Visayas.

Other prospective sites are Mactan island and “a little bit farther than Banilad,” Sy said.

”We’re really serious and bullish about Cebu. In fact, it’s our priority area for Visayas and Mindanao projects,” he said.

According to Sy, the company is in the look out for mall expansions, as it foresees growth in the country’s retail sector.

More malls, he said, helps decongest mall traffic.

SMPHI inaugurated last time its MS Bacolod branch in Negros Occidental, bringing to four the total number of malls in the Visayas.

In addition, SMPHI and the Iloilo government are now finalizing the bidding to develop a 54-ha lot of the Iloilo airport for another mixed-use facility, which includes residential and IT park developments.

Meanwhile, the 10.9-ha annex in SM City Cebu, dubbed the Northwing, is estimated to cost between P200 million and P300 million and is expected to open next month.

It has 171 leasable spaces and has 148 tenants. It has parking spaces on three floors and the roof deck can accommodate about 1,946 vehicles.

The Northwing, which is designed for the upper class market, will house upscale shops, specialty shops, a comfort lounge, concierge, entertainment area and restaurants. (PNA)