BACOLOD CITY — The bidding held last week for the purchase and lease of 7.7 hectares of prime property owned by the Negros Occidental provincial government in this city has been declared a failure.
Negros Occidental Gov. Alfredo Marañon Jr. said on Monday that there was a failure of bidding because both SM Prime Holdings Inc. and Ayala Land Inc. did not meet the P19,500-per-square-meter floor price set by the provincial government.
On Monday, both SM Prime and Ayala Land agreed to submit their proposals for a negotiated bidding on Friday.
“We will ensure that the winning bidder will offer what is most advantageous to the province and Negrosanons. This will be the biggest investment in the province so far, and it will definitely change the landscape (of Bacolod City),” Marañon said.
Marañon, who met with representatives of the two firms Monday, said the winning bidder would be decided by the provincial government’s Committee on Awards and Disposal of Property.
“The development plan of the winning bidder must also conform to the cultural and aesthetic requirements of Negrosanons. How the proposed development will look will be one of the considerations,” he said.
At the bidding on July 7, Ayala Land had proposed a P6 billion development of the area while SM said it had a P2 billion plan, Marañon said.
The Capitol property up for lease and sale consists of 7.7068 hectares along Lacson Street, North Capitol Road and Aguinaldo Street in Bacolod City .
Marañon said they have identified 3.6 hectares of the property for sale and 4.1 hectares directly surrounding the Capitol area for lease only.
Ayala Land has initially said it has plans to invest P6 billion for the construction of a convention center, a hotel, business process outsourcing buildings, and a shopping mall, the governor added.
In May, SM Prime Holdings Inc. officials, who were accompanied by Rep. Alfredo Abelardo Benitez (Neg. Occ., 3rd District), offered to buy or lease the property.
“We submitted an unsolicited proposal to build two hotels and convention center on property owned by the provincial government behind the Capitol. The initial estimate of investment is about P2.5 billion,” SM Prime Holdings president Hans Sy said then.
SM already has a mall in Bacolod City. /INQUIRER