The Department of Environment and Natural Resources (DENR) has directed Xavier University (XU)-Ateneo de Cagayan and real estate developer, Cebu Landmasters, Inc. (CLI), to explain the development of XU’s Manresa property along Masterson Avenue in Barangay Carmen, Cagayan de Oro City.

In a letter dated May 11, 2026, DENR’s Community Environment and Natural Resources Office (CENRO) directed XU and CLI to explain the property development and provide documents within 15 days.

The agency cited DENR Administrative Order No 2016-31 and Commonwealth Act No. 141, also known as the Public Land Act, noting that the land may have originated from a grant under the law.

The school and the developer are asked to clarify the legal and factual basis for the property’s present commercial or development use, and to submit any proclamation, law, administrative issuance, conversion order, or other government authority allowing such use.

DENR warned that failure to comply within the prescribed period would compel the office to proceed with its evaluation based on available records and evidence.

In a press conference on May 4, 2026, a lawyer, Atty. Ralph Metrillo, disclosed that the DENR Central Office has ordered DENR-10 to investigate and prepare for the possible reversion of the XU’s Manresa property.

The order reportedly came after Metrillo petitioned DENR to seize and forfeit the property from XU after finding out that the property is a government grant under the Public Land Act, with a clear prohibition against any use for commercial purpose or any non-educational use.

“This is a big development, and a swift one. We, most especially the government, are a step closer towards enforcement of a clear legal mandate and ultimately taking the property back. This shows what good it brings when the people participate actively and work hand-in-hand with the government. This is also in line with DENR Secretary Cuna’s thrust towards strong monitoring and enforcement,” Metrillo said.

DEVELOPMENT LEGAL

In a joint statement, XU and CLI maintained that the project partnership is legal and that the development of what it called as Masterson Campus of the Future will not be delayed.

“The modernization of Jesuit education in Mindanao will not be delayed by external noise or legally untenable claims,” the statement said.

XU said it has held title to the land for nearly 70 years and that all administrative restrictions tied to the property expired in 1968.

The university added that the property is protected under the Torrens system, which it described as the highest legal standard of land ownership in the Philippines.

XU and CLI also maintained that the title is “indefeasible” and said they have already submitted a counter-position paper to DENR to address opposing claims.

XU plans to develop 14.6 hectares of land to help fund the construction of a 21-hectare “Campus of the Future” that will include a 28-hectare forest reserve.

“This is institutional self-financing at its most visionary,” the statement said.

The school and the developer assured stakeholders and investors that the project remains on track, saying the Masterson Campus will be built despite challenges and opposition.

“We are moving forward with the construction of a legacy. The Masterson Campus will be built. The future of Xavier University-Ateneo de Cagayan and Cagayan de Oro is non-negotiable,” the statement added.

COUNTER ARGUMENT

However, Metrillo disputed the joint statement of XU and CLI, calling it misleading.

“On May 11, 2026, DENR-CENRO ordered XU and CLI in two separate summonses to explain their current commercial development of the area. DENR-CENRO gave 15 days for XU and CLI to submit their written explanation. XU and CLI have yet to file its answer and explanation,” Metrillo said.

Metrillo claimed that the summons indicate that DENR-CENRO found the complaint against the project sufficient “both in form and in substance” under DENR DAO 2016-31.

He argued that the property is a government grant “burdened with restrictions” and said DENR-CENRO required XU and CLI to present laws or administrative issuances authorizing commercial use and development of the land.

“Contrary to XU’s and CLI’s claim, there is no absolute legal certainty when DENR-CENRO itself ordered XU and CLI to explain and justify its commercial development. In accordance with DENR DAO 2016-31, the issuance of summons presupposes that DENR-CENRO found our complaint to be sufficient both in form and in substance,” Metrillo added.

Metrillo challenged XU and CLI’s assertion that the land title is “indefeasible” under the Torrens system, saying jurisprudence does not shield alleged violations of the Public Land Act done in bad faith.

“XU’s invocation of the Torrens System misses. The indefeasibility of Certificates of Titles under the Torrens System is for the protection of ownership. But XU’s ownership of Manresa was never in question. The question rather is whether XU’s ownership is absolute - it is not not,” Metrillo said.

The lawyer also disputed the claim that restrictions under Section 70 of the Public Land Act had already expired, insisting that the prohibition remains in effect.

“This is not a time for damage control. It is a time for transparency. This is not noise. This is the law catching up,” Metrillo said.