Cebu City Earns Another PHP85M from SRP

The Cebu City Government has earned another PhP85 million from the sale of a lot at the South Road Properties (SRP).

Acting Cebu City Treasurer Diwa Cuevas said the amount represents the last and final payment of SM Prime Holdings Inc. for the 30-hectare property it bought at the SRP where the PHP8.5-billion SM Seaside City Cebu was built.

SM Seaside City is the biggest mall in the Visayas and Mindanao.

SM bought the property for PhP2.7 billion on Jan. 14, 2010 during the term of former mayor Tomas Osmeña.

Cuevas said the PhP85 million, which served as the last tranche of amortization from SM, will be used to support the city’s PhP6.4-billion annual budget this year.

She said the amount was identified as one of its sources of funds.

Cuevas said the city will turn over the title of the entire property to the developer now that SM Prime has completed its payment for the lot.

She said 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.

Cuevas said Filinvest Land Inc. also completed late last year its payment for the 10.6-hectare Pond F at the SRP, which it bought from the city for PhP1.59 billion in 2009. (PNA) LGI/EB/EDS