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By Likha C. Cuevas-Miel, Reporter
MEGAWORLD Corp. told the Philippine Stock
Exchange that it recently signed an accord with the government for
the purchase of the 54.5-hectare old Iloilo airport, confirming an
earlier Manila Times report.
The property developer said it signed a sale and
purchase agreement with the government for P1.2 billion in cash.
Megaworld plans to apply for a special economic
zone license with the Philippine Economic Zone Authority since it
wants to transform the old airport into a new business district with
business process outsourcing (BPO) office buildings at the core of
this new development.
“Megaworld envisions its project to become a
magnet for major [BPO] companies interested to set up shop in the
Visayas region.
Besides office buildings, the development would
also have educational facilities to provide value-added training for
prospective employees required by BPO businesses that will be based
in the area.
Early this year, the first bidding for the old
airport property failed after none of the three bidders’ offer
reached the floor price of P1.2 billion.
The companies that submitted bids include
leading mall developer SM Prime Holdings Inc., Megaworld sister-firm
Empire East Landholdings Inc., and Robinson’s Land Corp.
Empire East told reporters earlier that it would
back out of the rebidding, if any would be conducted, since the
asking price was “too high” for a developer that caters to the
lower to middle income market.
Because of this, the Department of Finance
mulled over lowering the floor price for the second round. The
finance department said it is legally prohibited to conduct a
negotiated sale because it did not set a minimum price before the
first auction.
With the sale to Megaworld, government dispensed
with the second auction, and opted for the negotiated sale of the
property.
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