The SM group has proposed to buy Cebu City’s 300-hectare (741-acre) South Road Properties, the BusinessWorld newspaper reported, citing Cebu Mayor Tomas Osmena. The government is studying the proposal, Osmena told the daily.

The newspaper didn’t say which members of the SM group, which includes SM Investments Corp. and SM Prime Holdings Inc., were involved. South Road Properties refers to a reclamation area south of the city, which is 540 kilometers (336 miles) south of Manila.

In exchange for South Road Properties, the SM group proposed to take over the 12 billion yen (4 million) loan the city took from the Japan Bank for International Cooperation to fund the project, the newspaper reported Osmena as saying.