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4-Traders Homepage  >  Equities  >  PHILIPPINE STOCK EXCHANGE, INC.  >  JG Summit Holdings, Inc.    JGS   PHY444251177

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JG Summit : eyes P18-billion project in Cebu City

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11/10/2017 | 05:20pm CET

CEBU City Mayor Tomas Osmeña said a giant company has proposed an P18-billion mixed-use development project at the 8-hectare Kawit Island property in the South Road Properties (SRP).

Osmeña added JG Summit Holdings Inc. is expected to submit to the city a formal unsolicited proposal within the month.

'They will spend P18 billion for a hotel, restaurant, casino and convention center. There will be 1,000 rooms and four towers. When you spend P18 billion, you will have a lot of facilities, a yacht club, island cruises, a water park,' the mayor said.

He added JG Summit Holdings Inc. will soon announce a new corporation as a foreign partner will assist in the multibillion-peso project. He is eyeing at closing the deal within the month so that the process of the unsolicited proposal will move forward after negotiations with the executive department.

'An unsolicited proposal is unsolicited. In other words, the city did not specify what amount, and then they submit a proposal to the city, after which we will question it, we will negotiate and will go to the City Council,' Osmeña said.

Once accepted, the city government will formally present it to the public for a possible 'Swiss challenge,' which would give other companies the opportunity to match the proposal.

However, the original proponent can still submit a counterproposal if it wants to get the project back.

Osmeña expects the project to hire at least 8,000 workers. It will also result in more investments and businesses, and the city will get up to an estimated 15 percent of the project's gross sales.

The investor will lease the city's property for at least 50 years, he said.

'We're giving them a grace period of so many years. It's in their interest to get it started right away because the clock starts ticking now. Why will you wait until the grace period is up? So, they make money before the deadline,' he added.

Osmeña believes the announcement of the project will result in the increase of the value of properties at the SRP.

The city is now planning to sell at least 3 hectares of land at SRP at P110,000 per square meter (sq m). Before the announcement of the project, Osmeña said he has received a proposal of P115,000 per sq m from an undisclosed company.

The mayor added the P18-billion investment will possibly draw more buyers to the 3-hectare lot sale.

'The important essence here is it will bring up the price of all our properties at SRP,' he said.

It will take at least three years to construct the P18-billion project. Since it will be established at the Kawit Island property, Osmeña added the existing structures there, which include the Senior Citizens Building, will reportedly be transferred to the senior citizens' park at the expense of the investor.

Osmeña wants to name the project 'Isla de la Victoria.'

'My proposed name is going after an employee Elpidio 'Jojo' de la Victoria of Bantay Dagat Commission. I don't know if they will consider it. The name Isla de la Victoria gives it historical significance,' he said.

In April 2006 de la Victoria was killed reportedly because of his crusade against illegal fishing.

(c) 2017 Business Mirror Provided by SyndiGate Media Inc. (Syndigate.info)., source Middle East & North African Newspapers

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