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Cebu City sells 45.2 hectares of SRP lots for PHP16.76B

CEBU CITY, July 1 (PNA) -- The Cebu City government sold in a bidding Tuesday 45.2 hectares of lots in the city-owned South Road Properties (SRP) for PHP16.76 billion, almost double of its expected sale of PHP9.15 billion for the lots.

Cebu City Mayor Michael Rama, whose earlier planned to sell the SRP lots were blocked by the City Council, welcomed the results.

“God is good all the time. All the time, God is good. I am elated. I am the happiest man,” he said.

A consortium of Ayala Land-Cebu Holdings Inc. and SM Prime Holdings Inc. was the lone bidder for a 26-hectare parcel and offered PHP10.009 billion or roughly PHP38,000 per square meter.

The city government’s floor price was PHP20,000 per sq. m. or an expected sale of at least PHP5.267 billion.

Filinvest Land Inc. (FLI) placed the highest bid for the two other parcels, which have combined area of 19.2 hectares.

It offered PHP6.758 billion or about PHP35,128 per sq. m. The city expected to sell these parcels for at least PHP3.847 billion.

The city also received Tuesday PHP1.6 billion from the winning bidders as the bid security, which forms part of the down payment and is equivalent to 10 percent of the total bid price.

The Ayala-SM consortium paid a bid security of PHP1.1 billion, while FLI paid a bid security of more than PHP600 million.

The bid security will serve as a guarantee that the successful bidders will enter into a contract with the city after they are awarded the lots.

Cebu City Treasurer Diwa Cuevas said the PHP1.6 billion was the highest revenue the city has ever generated in just a day. (PNA)

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