China’s Shimao eyes 2 BCDA lots in Boni

By Ronnel Domingo Inquirer MANILA, Philippines--China’s real estate giant Shanghai Shimao group is vying for a joint venture with the Bases Conversion Development Authority (BCDA) on two properties for the development of “high-end, mixed-use” projects, BCDA president and chief executive Narciso Abaya said. The properties include a 7.4-hectare lot where Shimao is planning to invest $2 billion to build hotels, condominiums, offices and a commercial complex, Abaya said. Abaya said Shimao was also looking at the 35-40 hectare area known as the Jusmag housing area from which retired Armed Forces officials have been evicted after an ownership dispute. He said the Chinese firm was expected to submit a project proposal for the 7.4-hectare lot by November while another proposal for the larger parcel of land was expected next year. Abaya clarified that joint venture agreements on both properties would go through bidding or a Swiss challenge, in line with a government policy that requires a competitive process for selecting government partners. The National Economic and Development Authority “is currently working on the terms of reference” on how to enter into joint ventures like the one proposed, he added. The Jusmag (Joint United States Military Assistance Group) area -- so-called because it was originally a housing project for the American agency which declined to take it -- was recently the subject of an ownership dispute between BCDA and a homeowners’ association comprised of the wives of retired Armed Forces officials. The Supreme Court ruled in favor of BCDA, which is preparing to appraise the area toward eventual disposition of the asset through a joint venture with a private company. Last May, Abaya said Shimao chair Hui Wing Mao personally reiterated his serious and firm interest in investing in Fort Bonifacio during a recent meeting with BCDA officials in Hong Kong that month. Abaya said Shimao was a world-class, fast-paced developer that could finish a 900-room twin-tower luxury hotel in 18 months, as what they did with the Hyatt Hotel at the Bund in Shanghai. BCDA chairman Aloysius Santos had said that Shimao’s entry into the domestic setting would set a new standard in real estate development in the Philippines. The China visit by Santos and Abaya was made upon the invitation of Hui, who came to Manila last March to sign a memorandum of understanding with the BCDA on a joint development of a sizable portion of land at the Global City. Abaya said this was one of the biggest partnerships of the government for property development in 2007, which would further boost the asset disposition program of BCDA and enhance its revenue-generating capability.