Megaworld to buy old airport site for P1.2 B
The Department of Finance has approved the proposal of giant property developer Megaworld Corp. to acquire the site of the old Iloilo airport for P1.2 billion.
Finance Undersecretary John Phillip Sevilla, head of the DOF's bids and awards committee, said they have endorsed Megaworld's offer to the Privatization Council because it met the minimum price set by the government for the 54-hectare prime lot in Mandurriao District in this city.
Robinsons Lands was the only other company that submitted a proposal but only amounting to P908 million. It had previously submitted a bid of P1.09 billion for the property.
Sevilla said Megaworld's proposal involved a one-time payment of the full amount for the property. He said the Privatization Council will decide on the endorsement on Thursday.
The council which will give the final approval for any bids and proposals, is composed of the of the Departments of Finance, Justice, Budget and Management, Trade and the National Economic Development Authority.
Megaworld is known for constructing high-end properties including residential and commercial projects. Among its biggest projects are the Empire East Land Holdings, Inc. and Empire East Properties, Inc.
Megaworld and Robinsons were the only two companies that submitted proposals to acquire the property to the DOF's BAC last Monday.
The BAC had asked interested buyers to submit their proposals with a minimum price of P1.2 billion after two previous biddings failed.
Five companies had previously indicated their interest to acquire the property. But of the five companies that were pre-qualified to bid, only three went to the actual bidding on May 9.
Robinsons Lands had then submitted the highest bid of P1.09 billion followed by Empire East (P701 million) and SM Prime (P435.79 million). Rockwell Land Corp. and Ayala Land Inc. who earlier expressed interest to buy the property backed out.