The SM and Ayala Groups are set to complete the joint development of a 26-hectare Cebu property in five years instead of 10, the head of SM Prime Holdings Inc. said.
Hans Sy, SM Prime president, told reporters last week that completing the mixed-use development with Ayala Land Inc. would span only five years, considering the small size of the project.
“For that I should give it a good five years,” said Sy.
“That is a very small property which you may be referring to. It is on the adjoining property which we have a tie up with Ayala, because it is about the same size [where SM Seaside City Cebu is]. They will do their share we will do our share… It will be faster,” he added.
Developers usually take 10 years to develop a 20-hectare property.
Separately, SM Prime has a 30-hectare development in the Cebu South Road Properties, where the 450,000 square-meter SM Seaside City is located.
On the 26-hectare joint development with Ayala Land, Sy noted the project components are yet to be finalized with the master plan as the prime and sole blueprint to guide both developers.
“As a matter of fact, [we’re] not necessarily waiting for the masterplan to be ready. Our first agreement covers the division of the land. From there, we should see how the development would unfold. In the division of land, you see a lot of development already going on,” Sy noted.
The joint development would accommodate an arena and a convention center to be constructed by SM Prime in a 3.5 hectare portion of the property, which would cost P3 billion to P4 billion.
The SM-ALI Group won the bid for the 26-hectare property—a portion of the 300-hectare South Road Properties—last June. The consortium consists of SM Prime, Ayala Land, and Ayala affiliate Cebu Holdings Inc.
It was the third parcel of land out of the 300-hectare South Road Properties that was awarded by the Cebu government. The other two were already bagged by SM Prime for SM Seaside Cebu and by Filinvest Land Inc. for its 50-hectare City Di Mare township.