CEBU CITY, Nov 28, 2009 (Asia Pulse Data Source via COMTEX) — SPHXY Quote Chart News PowerRating — The Cebu City Government has put on hold its sale of South Road Properties (SRP) lots to SM Prime Holdings Inc. for P2.7 billion after it encountered a minor hitch, which will cause a delay of at least two-weeks in closing the deal.

Cebu City Mayor Tomas Osmena said he realized belatedly that the property that SM Prime wants to buy includes SRP?s guardhouse and part of the area intended for bus lanes.

He said the contour and location of the lots will have to be altered.

Osmena was supposed to sign the notice of award of the sale contract to SM Prime this week but he asked the bids and awards committee (BAC) to put the matter on hold.

Omena said the City might have to rebid the contract.

?There?s going to be some adjustments because when I looked at the map, I saw that we just sold them the guardhouse so we will have to make some realignment. We just give SM a part of the lot Korean investors want to buy,? he said.

The mayor explained that the lot that SM wants to buy encroached on the Bus Rapid Transit (BRT) roads, that is why they will replace this with a five-hectare roadside property.

Cebu City Administrator Francisco Fernandez said all the terms and conditions of the sale remain the same, and only the shape of the lot will be altered.

SM Prime submitted an unsolicited proposal to buy a 30-hectare portion of the SRP worth P2.7 billion, which they will develop into a shopping mall and convention center.

It also intends to build condominiums a hotel, a school and a hospital on the property.

The proposal went unchallenged during the bidding, prompting the BAC to recommend that the contract he awarded to SM Prime.

He said he expected the sale to be delayed for two weeks because of the needed adjustments.

Fernandez said a second bidding will not be necessary since the details of the invitation to bid will not be changed.

‘I don’t think that we needed to rebid the contract because only the shape of the property needs to be adjusted. Everything remains the same except the shape,’ he said. (PNA)