September 09, 2015

FLI set to bag major project in Clark Green City

Various newspapers today reported that Filinvest Land Inc submitted the sole but valid bid for a contract to develop 288 hectares of property within the proposed Clark Green City project. FLI submitted a bid with a P160m in development premium which complies with the minimum bid set by the Bases Conversion and Development Authority (BCDA). FLI and BCDA will now form a 55:45 jv for the project.

The Clark Green City involves the conversion of 36,000 hectares (roughly half the size of Metro Manila into a modern smart, green and disaster-resilient green metropolis. It is adjacent to the Clark Economic Zone and near the Clark International Airport. Government is now building the main access roads leading to the proposed city. The Japanese government is also assisting the BCDA in transforming the area into a key economic center in ASEAN, while the University of the Philippines has signed a deal with BCDA to establish a campus in the area.

Our take: To put things into perspective, the 288-hectare property covered by the FLI-
BCDA jv is slightly bigger than the 244-hectare Filinvest City that the company has developed in Alabang. The latter helped transform FLI into a diversified property developer and a key player in the BPO office leasing sector. If successful, the project can bolster FLI status as a major developer and ensure its long-term profitability. – WealthSec