IMAGE SOURCE: Manila Standard Today
Rival empires unite! Ayala Land, Inc. (ALI) and SM Prime Holdings, Inc. have partnered for a community development in Cebu, Lot No. 8-B-1 of the South Road Properties (SRP), Cebu.
Both are competing umbrella companies; their most well-known developments being their malls, Ayala Malls and SM Supermalls, respectively. The two massive corporations have well-established reputations in the real estate industry. Both companies confirmed that they will be working together for the 26-hectares in separate interviews. They secured the contract for developing the area in bidding P10-million. This is not the first time that the two have worked together for a project. The first was on an Ortigas property late last year, 2014, which was the decided solution to a 2-year feud over the much sought-after area.
The 26 hectares of SRP are envisioned to become a community that not only offers a residential area but a hub of entertainment, office, retail and hotel establishments as well. Prior to acquiring the contract for this lot, SM has already been exclusively developing a 30-hectare area, designed to be a “premier lifestyle destination” as stated on the SM Seaside City website with a “retail and commercial establishments, dining and entertainment outlets, upscale retirement facilities, mid-rise residential condominium buildings, office blocks, a hospital, the post-graduate campus of the University of the Philippines and tourism-oriented facilities.”
Cebu Holdings, Inc. (CHI) will also be working with SM and ALI on the project. CHI is a Cebu-based marketing company which currently works with subsidiaries of Ayala Corporation namely, Ayala Land Inc and Ayala Malls, for several of their Cebu developments.
The government will be auctioning off 2 more lots of the SRP later this year. The current area of SRP is 240 hectares but Cebu City Mayor Michael Rama revealed that there are plans to reclaim an additional 60 hectares, increasing the total area of SRP to 300 hectares.
Cebu has seen numerous developments, real estate as well as commercial, in recent years with the economic growth of the province booming, averaging at roughly 7% a year. Behind some of these are big players in the property development industry composed of companies that already had a strong presence in Cebu, namely SM and Ayala; and also new players like Megaworld and Filinvest.