Cebu City Mayor Michael Rama is calling for more investors in the South Road Properties (SRP).
Rama fears the city’s ballooning debt from the Japan Bank for International Cooperation (JBIC) which the city has to pay every year until 2025 for the SRP loan.
During Filinvest Land Inc.’s topping-off ceremony for their Sanremo Oasis development in SRP last Saturday, Rama said the sales of the condominium units and future sales for the lots will be a lot of help to cover up the city’s debts to the Japanese government.
The city government has loaned Y2.315 billion from the Japanese government payable until 2025. So far the city has paid over P5.3 billion.
“Kon daghan na’g kwarta, makabalik na ang gikinahanglang kwarta para sa katawhan. Sa kadugay na nga wa intawn matagamtam tungod sa sige mi’g bayad sa sige’g bayad ” he added in Cebuano.
The city is going to benefit in the sales of the condominium units under the city’s joint venture agreement with Filinvest.
The 10-hectare development of Sanremo Oasis will include medium rise building and Business Processing Outsourcing (BPO) offices.
Las Marias said the joint venture agreement with the city government involves 40-hectares of SRP.
“In the next year or so we will start to accept buyers (for the condominium units) and in that same 12 months we will be able to build the BPO building,” says Filinvest Vice President Tristan Las Marias.
Sanremo’s target market are the BPO employees with a selling price of P2.5 million per unit.
Rama has approved to build four BPO buildings within the property.
“This is very important to the Sanremo buyers because the BPO employees will prove to be a good rental market for the units we bought in Sanremo,” Las Marias said.
“It complements our optimism of Cebu BPO market,” he added.
Rama in his speech said the city will protect the interest of the investors of the SRP amidst the issue on Rallos’ claim of P133 million.
The court decided to auction 9.7-hectare lot which is one part of the joint venture deal between the city government and Filinvest since the city refused to pay P133 million to the Rallos heirs for the expropriated lot in Sambag 2.
No one however joined the auction scheduled last week. Another date for auction is set tomorrow.
The city’s failure to stop the auction according to Cebu City South District Rep. Tomas Osmeña has ruined the city’s reputation to sell real properties.
Rama previously announced that he will offer parcels of land to interested buyers which is opposed by his predecessor.
Osmeña said selling of the SRP lots can wait until SM can build their mall when the selling price would be higher.
“When the people of the city government is at stake and their interest has to be addressed, let politics be set aside and let the general welfare be given more attention and that we should do it, because that is what the primary responsibility of a public servant and we woul like to serve the public,” Rama said.
The interest of the city’s loan payment would have been used by the city for the payment basic services.
Rama was then vice mayor of the city when the joint venture agreement was signed 2009.
Rama said he is “lucky enough to be part of the whole SRP.”
“In the year 1992, I started my public service and I was there in all the deliberation. I have been approving SRP, defending SRP. Mike Rama now your mayor was there before, today and will be here even tomorrow,” he said.
Rama said he set aside politics when it comes to making decisions for the city’s general welfare.
Osmeña was not able to attend the topping-off ceremony of the first building of Sanremo Oasis at Citta di Mare in SRP.
The congressman was supposed to give his message together with Rama and the FLI Vice-Chairman, Andrew Gotianun, Jr. /Correspondent Tweeny Malinao