Inquirer Visayas
11:50 pm | Friday, July 26th, 2013
BACOLOD CITY—Ayala Land Inc. (ALI) has indicated its renewed interest in pursuing the development of a 7.7-hectare property belonging to the Negros Occidental provincial government in this city.
In September last year, Ayala Land withdrew its P6-billion development plan for the property, citing “delays and legal disputes that continue to threaten its implementation.”
“Ayala Land is open to proceed with discussions on the Bacolod Capitol project but remains concerned with its pending legal case as this will compromise its ability to obtain the necessary legal requirements to undertake the full development of the property,” ALI said in a statement.
Negros Occidental Gov. Alfredo Marañon Jr. last week said that Ayala Land president and chief operating officer Antonino Aquino and senior vice president and Vismin group head Emilio Tumbocon recently met with him to convey their interest in the project.
Marañon then assured the company officials that the Negros Occidental provincial government would honor the deed of conditional sale and lease contract with ALI covering the 7.7-hectare property on Gatuslao Street in Bacolod City.
The contract was signed in April last year.
“The company appreciates the Negrenses’ continued trust and confidence, and will pursue projects that will be of great benefit to the province of Negros Occidental,” ALI said.
Marañon said the implementation of the project has been delayed due to the pending case filed by SM Prime Holdings against the provincial government before the Regional Trial Court of Bacolod, questioning the manner in which the 7.7-hectare property was awarded to ALI.
The governor, who expects a ruling to come out soon, maintained that the transaction did not violate the law.
Assistant Provincial Legal Officer Mary Ann Manayon-Lamis said last week that she was not sure if the SMPH would present rebuttal evidence.
If not, both parties would submit their memoranda and the case would be submitted for resolution, she said.
After Ayala Land withdrew from the project, the provincial government engaged in talks with the Bangko Sentral ng Pilipinas for the purchase of 5,000 square meters of the 7.7-hectare property, Marañon said.
The governor also said they would no longer sell the rest of the property, which would instead be offered for lease only.
However, Marañon said the provincial government would have to honor the contract it had signed with ALI as it was still in force.
“ALI had asked to disengage from the project and we asked them to reconsider, so the contract had not been rescinded,” he explained.
The provincial government, in a deed of sale signed April 27, 2012 with ALI, agreed to the sale of 36,587 square meters of its property on Gatuslao Street for P750.03 million.
In a separate contract, the provincial government also agreed to the lease of 40,481 square meters at P2.95 million a month, with the rent escalating by 10 percent every five years.
Ayala Land had planned to develop the area into an integrated mixed-use civic and commercial district that will combine the center of government with commercial and residential uses, making it the growth center of Metro Bacolod and Negros Occidental.
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Tags: Ayala Land , Business , negros occidental property
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