PROPERTY giants SM Prime Holdings Inc. and Ayala Land Inc. said their joint masterplan for the development of a 26-hectare portion of South Road Properties (SRP) in Cebu City may be completed in the next few weeks.
The two companies recently bagged the project to develop a portion of the reclaimed SRP for P10 billion.
While they will be working on the master plan together, the two companies will be doing separate projects, Ayala Land chief financial officer Jaime Ysmael told reporters on Thursday.
“We will just plan it together but we will do our separate projects. We’ll just master plan it together so we can maximize the use so that the development is coordinated,” said Ysmael.
SM Prime executive vice-president Jeffrey Lim confirmed they are collaborating on the master plan and that it will hopefully be completed in a few weeks.
“We’re going to jointly work on a master plan. So hopefully, in the next few weeks” it will be completed, Lim said.
Lim said that SM decided to partner with Ayala Land to develop the project faster and to lessen the additional capital expenditure needed.
“That’s why we decided to collaborate rather than going on our own. We also wanted to make sure that the area will be developed faster. In a way, we also managed the capital expenditure,” he said.
Ysmael explained that the project is not really a joint-venture between SM Prime and Ayala Land but rather one that will divide portions of the land to the two developers.
He said ALI’s real joint-venture partner is affiliate Cebu Holdings Inc. which is also part of the SM-Ayala consortium.
According to Ysmael, this project has already been factored into Ayala Land’s capital expenditure plan for this year.
As for the size of the land distribution, both SM Prime and Ayala could give any details yet since the master plan has not yet been completed.
“We’re still trying to determine that [the size]based on the master plan, but given the size of the mall that we have now, The SM Seaside City Cebu, I think the retail development of this new area will be more like strip-type. I don’t think it will be the complete size of what we have now. But I think both us and Ayala recognize this given the size of the development,” said Lim.
Ysmael explained that they still have to identify which areas will belong to them and which will go to SM.
“We are still trying to identify which areas. We have some idea where we want to be, but it’s still being threshed out. But definitely, it will be a joint master plan so we can take advantage of the location,” said Ysmael.