SM Prime Holdings, Inc., one of Southeast Asia’s largest property developers, is hoping to acquire the 10-hectare Harrison Plaza property owned by the City of Manila.
 
According to SM Prime chief finance officer Jeffrey Lim, they are in talks with the local government for the sale of the property.
 
“We are still negotiating,” he said adding that “all parties must come to an agreement.”
 
Industry sources said SM Prime was approached by the Manila local government after discussions with another party bogged down.
 
“It was offered first as part of the swiss challenge for the property, but because the negotiation with the other party bogged down SM is now the only one,” said one of the sources.
 
The 10-hectare property, one of the few remaining large track of government-owned land in Manila, was acquired by  the City of Manila in 1970.
 
However, it has a standing long-term lease with the operator of the Harrison Plaza mall that is not set to expire until 2021.
 
A large SM Department Store is the main tenant of the commercial center which was very popular in the 1970s to 1980s.
 
SM Prime is aiming to reclaim 1,500 hectares of land for Cordova municipality in  Cebu.
 
The deal is still to undergo the mandatory swiss challenge.
 
SM Prime is alloting P180 billion for capital expenditures for the next three years to drive growth in the Philippines and China.