A MIXED-use building and tower complex is set to rise at the Cebu Provincial Government’s Ciudad Property, which is adjacent to the highly commercialized Cebu IT Park, along Gov. M. Cuenco Ave. in Cebu City.
This, after the Cebu Provincial Government, led by Gov. Gwendolyn Garcia, turned over the 1.2-hectare of the 1.4-hectare Ciudad Property in Barangay Apas to Filinvest Land Inc. (FLI) on Friday, March 22, 2024.
The property’s remaining 2,000 square meters will follow.
Garcia handed the documents to FLI president and chief operating officer Tristan Las Marias, signaling the start of the project’s civil works.
FLI, however, did not yet disclose the project’s timeline on Friday.
In a video presentation during the ceremony, FLI outlined plans for a mixed-use hotel, office space building and a business park at the Ciudad Property under a public-private partnership (PPP) arrangement at no cost to the Provincial Government.
Upon completion, FLI will transfer ownership of the tower complex to the Provincial Government through a build-transfer-operate (BTO) agreement. In exchange, FLI will have exclusive rights to manage and operate in the area for 25 years to recoup its investment.
Under the BTO, the Provincial Government will also earn rental and shares from FLI’s profits.
In January 2024, Capitol and FLI agreed on the amendments to the BTO deal signed back in 2006. The new rental rate now starts at P65 per square meter per month with an escalation rate of five percent per year, which will begin in the sixth year of the lease.
The Provincial Government shall also have a share of two percent of the gross sales or P200,000 per month, whichever is higher.
Fifth District Provincial Board (PB) members Andrei “Red” Duterte and Mike Villamor, Fourth District PB Member Kerrie Keane Shimura and Sixth District PB Member Glenn Soco witnessed the turnover ceremony along with FLI officials.
In his speech, Las Marias said the Ciudad Property is FLI’s second PPP project with the Provincial Government.
The first PPP venture between FLI and the Province was Filinvest Cyberzone, a four-tower business process outsourcing complex built on a 1.2-hectare Capitol-own property at the Cebu IT Park in 2012.
“This collaboration transcends business interest, and it underscores Filinvest’s aspiration to be recognized as a reliable and responsible partner in nation-building and progress with Cebu province serving as a focal point and a testament of our endeavors,” Las Marias said.
Garcia, during her speech, said that Friday’s event serves as a reaffirmation of the Capitol’s partnership with FLI and the Gotianun family’s real estate.
She added that since 2012, the Provincial Government tried to negotiate the premiere Capitol-own vacant lot to other PPP initiatives; however, FLI offered a better deal through an unsolicited proposal to Capitol after a long scrutiny of the Economic Enterprise Council (ECC).
In December 2023, the Cebu Provincial ECC granted FLI the original proponent status for the project with an initial cost of P16 billion. / EHP