From: BusinessWorld Online

SM still interested in P123-B dike project

SM Prime Holdings, Inc. remains keen on the P122.8-billion Laguna Lakeshore
Expressway Dike project (LLEDP) amid wavering interest from its consortium with the
countrys biggest companies that is potentially making a bid for the governments biggest
public private partnership (PPP) project to date.

I was asked because there are mixed reactions from the consortium.

Tinanong ako, my answer is very interested pa rin (I was asked and my answer is still very
interested), SM Prime President Hans T. Sy said in an interview last week.

SM Prime is part of Trident Infrastructure and Development Corp., or Team Trident, that also
includes property developers Ayala Land, Inc. and Megaworld Corp. and conglomerate Aboitiz
Equity Ventures, Inc.

Team Trident is one of the groups that pre-qualified for the LLEDP. The two other pre-qualified
bidders are Malaysias Alloy-PAVI-Hanshin LLEDP Consortium and San Miguel Holdings Corp.

Team Trident Spokesperson Roman V. Azanza III described the Laguna project as the most
complex PPP to date.

As currently structured, the project remains both economically unviable and exposes the
concessionaire to extensive risks; and as a consequence, is unbankable at this time, Mr. Azanza
said.

The PPP project involves a 47-kilometer flood control dike, on top of which will be a six-lane
expressway from Taguig City to Los Baos, budgeted for around P64.914 billion; and the
reclamation of 700 hectares west of the expressway-dike for about P57.897 billion.

Team Trident is working with the grantor, through bidders one-on-one sessions and comments
to bid bulletins, to find solutions that will address the main outstanding structural issues in order
to create a sustainable and viable project, Mr. Aranza added.

The Department of Public Works and Highways (DPWH) is issuing a new bid bulletin to address
mounting concerns over the project, including claims of pre-qualified bidders that the project
will cost significantly more than official estimates.

The bidding date has been moved to Jan. 7, 2016, according to the DPWH Web site. The notice
of award will be on Feb. 19, and the signing of the concession agreement will be on March 18.

Ten PPP deals cumulatively worth P189 billion have been awarded since the infrastructure
program was launched in late 2010.
DMCI unit enters office leasing business
THE property arm of DMCI Holdings, Inc. is venturing into the office leasing business in
line with the companys diversification efforts, with the Consunji-led firm projected to
increase its residential unit launches by two-thirds in 2016.

DMCI Project Developers, Inc. President Alfredo R. Austria told reporters yesterday
the company intends to launch a 36-storey office project along Pasong Tamo in
Makati City that will have over 40,000 square meters (sqm.) in gross leasable area
(GLA), subject to the receipt of the necessary permits.

Theres a good location and theres still a good market for office, Mr. Austria said
when asked about the timing of its entry into the office leasing business.

Were now in a good position to do it because of the available resources, he

added.

The foray of DMCI Project Developers, which is operating under the brand DMCI
Homes, into office leasing is its latest move at diversifying its property business.
The real estate firm is also also offering more high-end and affordable projects,
expanding its geographical footprint, and entering the mass housing sector.

DMCI Homes is bringing to the market six to seven new projects next year,
comprising 14,000 units worth a combined P50 billion, higher than the close to
10,000 units worth P30 billion launched this year, its Chief Financial Officer Joseph
Ramil B. Lombos said.

The P50 billion worth of projects -- one of the highest in the companys history -- is
lower than the P60 billion that DMCI Homes announced in August since the timing of
the launches will depend on securing the necessary government permits, Mr.
Lombos said.

One of the projects that may be rolled out by yearend is a P3-billion high-end
development on a 1.1-hectare property in the Manila Bay area with an average
selling price of P125,000 per sqm, Mr. Austria said.

The project will offer 300 units ranging from 80 to 100 sqm. at an average selling
price of more than P10 million, he added.

Likewise, DMCI Homes plans to enter the mass housing sector where it says the bulk
of the housing demand is.

Were going there not because its lucrative. That will be more for our CSR
(corporate social responsibility), Mr. Austria said.

Shares in DMCI Holdings added six centavos or 0.44% to close at P13.72 each on
Wednesday. -- Krista Angela M. Montealegre