WHAT’S next now that the ordinance authorizing the sale of nearly three hectares in the South Road Properties has been approved by the Cebu City Council?
Councilor Nendell Hanz Abella, who authored the measure, said that an investor has approached Mayor Tomas Osmeña to inquire about the property.
He, however, declined to give more information about the interested buyer.
“The mayor mentioned that there were already inquiries, but we have yet to discuss it because he was still waiting for the measure to be approved at that time,” Abella told reporters in an interview yesterday.
Interested buyers, though, still have to participate in the public bidding that the City Hall’s bids and awards committee (BAC) will be calling in the coming days.
Based on the ordinance, the initial bid and the final purchase price of the property, whether in whole or half, shall be at least P110,000 per square meter (sq. m) or P3.3 billion for the entire property.
The ordinance also states that buyers may pay in full or in two installments, which shall be at least 50 percent upon signing of the sale documents. The remaining half will be paid upon approval of the Commission on Audit (COA).
The property shall be awarded by the City Government to the winning bidder upon full payment.
Whoever wins the bidding, Abella said, will shoulder all applicable taxes arising from the transaction that includes capital gains tax, documentary stamp tax, clearances and registration fees.
BAC, Abella said, will formulate the terms of reference for the transaction, which will then be reviewed by the council.
Once this is approved, the execution of the deed of absolute sale will follow, he said.
The property that will be sold are Lot 1-F-8-A with an area of 25,769 sq. m and Lot 1-H-1 with an area of 3,349 sq.m located at Pond F.
The area that the City wants to dispose of is less than one percent of the more than 300-hectare SRP.
“The sale shall be conducted with strict adherence to the COA rules and regulations for public auctions in order to get the highest obtainable price, subject to the minimum price limit set by the City,” Abella said.
The sale of the three-hectare SRP lot was approved by the legislative body during their regular session last Tuesday.
Twelve out of the 17-member council approved Abella’s measure.