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SM urged: Study SRP deal closely

A CAPITOL consultant yesterday warned an investor who is negotiating for a South Road Properties (SRP) land deal with the Cebu City government to take a closer look at the transaction.

Rory Jon Sepulveda, Capitol consultant on information and revenue generation, said the planned disposal of 30.4 hectares of SRP lot to SM Prime Holdings Inc. may also be as questionable as the Filinvest sale and the joint venture.

“We welcome SM to create economic activities in the province of Cebu. Our unsolicited advise is that they should take a closer look at the transaction that they are about to enter into,” said Sepulveda who was speaking on behalf of Gov. Gwen Garcia.

Sepulveda said it would be best for SM officials to also review the city government's joint venture ordinance.

Rep. Pablo Garcia of the second district of Cebu earlier said that disposal of any public land to a private entity like Filinvest is unconstitutional and a violation of the Public Land Law.

After reading media reports on the SM sales, Sepulveda said he was confused on how the city government wanted the disposal of the 30.4 -hectare property done – through sale or joint venture agreement.

Sepulveda said subjecting SM's offer to buy to a competitive challenge could only apply to joint venture agreements.

RJ Ledula, SM public relations officer, said they would not comment on the Capitol's statements because no contract had been signed yet.

Sepulveda clarified that Capitol's comments on the proposed SM deal is not meant to discourage the buyer.

He said that they were only trying to be consistent on their stand against the disposal of government land to private corporations and the questions they raised on the flaws of the JV deal with FLI.

“Law-ay man sad kaayo ug magpakabuta bungol lang ang probinsya aning plano sa SM nga mo palit ug yuta sa SRP. We are not discouraging the. We only wanted to make sure nga walay legal infirmities,” said Sepulveda.

The provincial government, he said wanted to protect the interest of its investors and the Cebuanos.

“We are not against SM. We welcome their investments but our unsolicited advise is for them to carefully study the situation,” he said.

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