SM Land Inc. wanted to buy a 33.1-hectare property in Bonifacio South and submitted an unsolicited proposal for it before the state-run Bases Conversion and Development Authority, but the suggestion was dropped – supposedly indirectly – by BCDA on the basis of a directive from Malacañang.
 
Because of the Palace directive, BCDA on Thursday said it has terminated the competitive proceedings – also called the Swiss Challenge – for the property and instead is going for an open competitive bidding.
 
In a statement, BCDA president and chief executive Arnel Paciano Casanova said an open bidding for its land assets is more advantageous to government in getting the best price and the best development for the property.
 
“Transparency, which is the heart of public bidding, will ensure that everything is above board. This… will encourage the best bidders to compete in a level playing field,” Casanova said.
 
Thus, BCDA decided to set aside the unsolicited proposal of SM Land based on an order from
the Office of the President.
 
In an Aug. 15 letter to SM Land vice president David Rafael, BCDA said “…the Office of the President has decided to put the development of the subject property on public bidding.
 
“In this light we regret to inform you that we are terminating the proceedings on the Competitive Challenge and shall be returning the proposal security…
 
“May we take this opportunity to invite SMLI to participate in the bidding for the subject property," the letter read.
 
The property along Lawton Avenue is separated from the Jusmag property adjacent to the NAMRIA area and a six-hectare strip kept by the Philippine Army.
 
In August 2010, BCDA published an invitation for real estate companies to submit comparative proposals to challenge the unsolicited suggestion by SM Land.
 
SM Land proposed to develop the 33.1-hectare for P20 billion.
 
On its website, SM Investments Corporation noted that subsidiary Shoemart Inc. was renamed to SM Land Inc., effective October 3, 2008, to be the main holding company for SM property-related subsidiaries and projects.
 
Also interested in the BCDA property were Ayala   Land Inc., Filinvest Land Inc., consultancy firm Jones Lang La Salle-Leechiu, Megaworld Corp., Robinsons Land Corp., and Rockwell Land Corp.
 
The proceedings were put on hold in 2010, pending a policy review by the Office of the President on the best possible approach to develop the property – lease or joint venture or sale – and issues on relocation and replication.
 
The BCDA board is now in the process of approving the terms of reference for the bidding.
 
The participation of top real estate developers in the recent bidding of a 74-hectare portion of Food Terminal Inc. in Taguig City was a reflection of the healthy and sound state of the real estate sector, said Casanova. Ayala Land Inc. won the bidding.
 
“The 33.1-hectare… property, which is at the southern side of Bonifacio  Global  City, is between Newport City and McKinley West and near posh Forbes Park,” the BCDA official said.
 
 “We expect the open competitive bidding of this prime property to attract the country’s top real estate developers and unlock the best value for government,” he added.
 
The property is currently occupied by the Army Support Command and Special Services Unit, the Bonifacio Naval Station, and the Philippine Navy Marine Corps. — VS, GMA News