THE Cebu City government on Thursday signed an agreement with SM Prime Holdings Inc. for the outright sale of 30 hectares of the reclaimed South Road Properties (SRP), marking the official start of an estimated P20-billion investment by the company in the property for the next eight years.
SM Prime president Hans Sy said they will build a new mall that should be among the top 10 biggest malls in the world, a convention center and a chain of sky-rise hotels and condominium buildings. He said the whole development will be completed in eight years.
“When I heard that we got the deal, I said ‘this is it.’ This is the start of a whole new ballgame for Cebu. We will make a clear statement that will put us on the map of Cebu,” Sy said. “We will deliver a project that will make all Cebuanos proud.”
Sy turned over to Mayor Tomas Osmeña a check for P406.45 million, completing the total down payment for the whole property at P677 million in a ceremony at the SM City Cebu.
The total purchase price for the 30-hectare land is P3.027 billion payable until 2015.
Although the contract with the city stipulates SM to build within 18 months, Sy said construction work will commence by the middle of 2010 for the 250,000-square-meter mall and the 60,000 square-meter convention center.
“Prices of materials are going up, so it makes perfect sense for us to start building immediately,” he said.
“SRP is not just another real-estate project. This is a mechanism that will drive Cebu into the future,” he said. “The other developers who did not come fast enough will have to pay double.”
Ron Tumao, vice president of SM Prime, said the long-term plan for the SRP includes building a university and a hospital.
“It is a beautiful property facing the sea. All these development projects will make Cebu a part of the destination for all local and foreign tourists,” Tumao said. “What is best for Cebu is you have the best salesman in the world in Mayor Osmena.”