FILINVEST Land Inc. (FLI) and Cebu City Hall is set to break ground and launch their joint venture project at the South Road Properties (SRP) next week.

Officials say project would start earning for the City by next year.

Updates on President Benigno Aquino III's presidency

Joel Mari Yu, managing director of Cebu Investment and Promotions Center (CIPC), said the City could start getting its 10 percent share of FLI’s sales at the end of this year, but only if the developer is able to sell or lease condo units.

FLI will break ground on Aug. 28 for their Citta de Mare project, which are Italian inspired residential buildings with commercial areas.

But Tristan las Marias, FLI vice president for Visayas and Mindanao, said the company is not sure yet when they will be able to start selling the units since they are still securing permits.

“We’re still processing the permits and license to sell. We’re starting to receive intentions to buy already. Maybe by fourth quarter we will get permits and license.

We can remit to the City after that on what is sold and collected,” he told Sun.Star Cebu.

He projected that by third quarter of 2011, they will be able to remit the City’s

share in the earnings from the joint venture.

FLI is the joint venture partner of the City Government in the development of a 40-hectare lot in the SRP and is also the owner of the 10.6-hectare Pond F, which it bought for P1.592 billion from the City last year.

It will start developing the 10-hectare portion of the 40-hectare lot covered by the joint venture agreement, and the development of the 10.6-hectare Pond F.

City by the sea

On the 10-hectare joint venture area, six medium-rise residential buildings and a four-hectare central park will be constructed to form part of the 40-hectare “Citta di Mare,” which is Italian for city by the sea.

The first phase of Citta di Mare is expected to be finished in three to five years.

Commercial and retail complexes, a 2,000-square-meter exhibition tent, a boardwalk with fine dining restaurants and fastfood outlets will also be constructed in Pond F, the 1.1-kilometer stretch of seafront lots in the SRP.

Yu said FLI is now training its sales agents and brokers, and pre-selling activities will be in full swing soon.

“Upon conclusion of every sale, 10 percent of every sale of any income will be remitted to the City Government, whether it’s a sale or a lease,” he said.

As stated in the joint venture contract, the City gets a 10-percent share in the sale of built-up units in the 40-hectare area, or a minimum guaranteed return, whichever is higher. The City will get its share annually.

But if the minimum guaranteed return, which is the sale price of the land plus 20 percent, is higher than the City’s 10-percent share, FLI is obliged to make additional payments at the end of the five-year development period.