SM PRIME Holdings Inc. completed its payment to the Cebu City Government for the 30-hectare property it bought at the South Road Properties (SRP).

It made the last and final payment last Jan. 14, when it turned over P85 million to the City, said Acting City Treasurer Diwa Cuevas.

SM bought the property for P2.7 billion on Jan. 14, 2010 during the term of former mayor Tomas Osmeña.

The property is now home to the SM Seaside City Cebu, the integrated property developer’s biggest mall in the Visayas and Mindanao.

Funding source

Cuevas said the P85 million, which served as the last tranche of amortization from SM, will be used to support the City’s P6.4-billion annual budget this year. The amount was identified as one of its sources of funds.

Now that SM Prime Holdings has completed payment, Cuevas said the City will turn over the title of the entire property to the developer.

According to Cuevas, the Land Bank of the Philippines (LBP) informed her two weeks ago that the title is ready for the turnover.

The title was placed on escrow with the LBP, as the state bank is the borrower on record of the 12.315-billion yen loan granted by the Japan International Cooperation Agency in 1995 to reclaim the 300-hectare SRP.

SRP Management Office Chief Roberto “Bu” Varquez said the turnover might have to wait until after the city’s hosting of the International Eucharistic Congress (IEC), which will run from Jan. 24 to 31.

He said the City still has to prepare some documents, including the deed of sale for the 30-hectare lot, which the City Legal Office is supervising.

Sa pagkakaron, busy pa man gud kaayo ang mga tao (We are very busy right now). Bag-o pa ta nahuman sa (We just finished holding the) Sinulog and then we are still preparing for the IEC,” he said.

Late last year, Cuevas said Filinvest Land Inc. also completed its payment for the P10.6-hectare Pond F at the SRP, which it bought from the City for P1.59 billion in 2009.