BCDA accepts joint venture offer of Megaworld
Posted on April 27th, 2009
The 8.38-hectare North Bonifacio lots will be up for development once the Bases Conversion and Development Authority (BCDA) finalizes the acceptance of the Megaworld Corp. for the joint development of the property. BCDA vice president Aileen Zosa said Megaworld submitted the unsolicited proposal last year.
It then went to detail negotiations with the agency until the offer was accepted by BCDA, subject to conditions. The joint venture (JV) agreement signed by Megaworld and BCDA contains the following terms and conditions; that Megaworld has been found to be eligible to enter into the proposed JV activity; and that BCDA shall commence solicitations for comparative proposals.
In the Megaworld’s JV offer, the North Bonifacio lots were valued at P33,283.88 per square meter. The offer also includes the mixed-use development of the property at a cost of P15.6 billion, and that the builder will also deposit P700 million as upfront partial payment. BCDA will be using the new JV guidelines issued by the National Economics and Development Authority (NEDA) in May 2008 for the “Swiss challenge†of the Megaworld offer.
The notice for the invitation to other interested proponents will be published, and it will contain the terms of reference of the competitive challenge procedures, particularly the eligibility requirements starting April 29.
Zosa is looking for other parties to improve on the P33,283.88/sq.m. offer of Megaworld. She said they can also match the P15.6-billion development cost that the listed company proposed or better top it, but still the offer for the lots is the determining factor.
If a superior offer is received, Megaworld has the right to match it and secure the contract, otherwise, the competitive challenger will get the contract. “At least we are now sure that disposition of the property will be market-driven and there is at least one proponent that is interested. We want to dispose the property within the year to show that there is still confidence in the economy,†Zosa said.
