CEBU CITY — SM Prime Holdings, Inc. is modifying the master plan for its mixed-use development in Cebu after its consortium with Ayala Land, Inc. (ALI) won the bid for another parcel of land in the South Road Properties (SRP) area.

On the sidelines of the opening of SM Seaside City Cebu, SM Prime President Hans T. Sy told reporters the company is transferring the arena and convention center — originally intended to rise within the 30-hectare SM Seaside Complex — to the property it will jointly develop with Ayala Land.
 
Despite changes in the master plan, SM Prime will retain its investment commitment of around P20-30 billion for the SM Seaside Complex.
 
“I have to move the arena and convention center. That was the agreement (with Ayala Land),” Mr. Sy said.
 
SM Prime and Ayala Land are in the process of finalizing the master plan, which will be out this year.
 
“Now it’s a bit clear after we had a joint venture with Ayala. We will come out with a business park. The concentration of the other side will be office,” Mr. Sy said.
 
He was referring to the plan for the 26-ha plot, which the SM-ALI Group consortium, including the latter’s affiliate Cebu Holdings, Inc., won in a bid in June for P10 billion.
 
The lot is adjacent to the 30-ha SM Seaside Complex, which forms part of the 300-ha SRP property.
 
Both parties are equally dividing the property net of a 3.5-ha portion, which SM Prime will develop into an arena and convention center.
 
“We came to an agreement to put up an arena [so] I get the first choice of choosing the property,” Mr. Sy said.
 
“Since we will put in P3-4 billion for the arena and convention center, I get the first choice. We subdivided it into many areas,” he said.
 
The company is building an oceanarium within the complex in partnership with the developer of the Manila Ocean Park and is also developing the first Kenneth Cobonpue Park.
 
Anchoring SM Seaside Complex is SM Seaside City Cebu — the company’s fourth biggest mall in the Philippines after SM Megamall in Ortigas, SM North Edsa in Quezon City and the SM Mall of Asia in Pasay City.
 
Shares in SM Prime shed 35 centavos or 1.6% to close at P21.50 on Friday.