The SM Group is still awaiting the go-signal from the Duterte administration if it will proceed with the two big-ticket reclamation projects in Manila and Cebu worth $5 billion.

“In terms of reclamation, we’re still waiting. As it is right now, we still have the contract with the local government units,” said SM Prime Holdings Inc. (SMPH) incoming president Jeffrey Lim.

Lim is taking over the helm of SMPH, the Sy-owned integrated property and mall developer, effective Oct. 1. He will replace Hans Sy, who wants to focus on strengthening the National University acquired by the company in 2008.

The reclamation projects, left by the previous administration, involve one that spans 635 hectares from Las Piñas to Parañaque, and another 400-hectare development in Cebu.

The first project is intended to become a government center along a residential, industrial, educational and commercial zone. It will be bounded by bounded by Asia World Properties in the North, and the Municipality of Bacoor, Cavite in the South.

Meanwhile, the Mactan North Reclamation and Development Project, being undertaken by Lapu-Lapu local government, is being developed for commercial, industrial and tourism purposes.

Lim said it is likely that SMPH would proceed with the Manila reclamation project first before the Cebu development.

“We will start with the Manila Bay reclamation and not with Cebu,” he said.

He said that once the government agrees to proceed, the company can easily raise the needed funds given its low fearing ration.

Another option is to raise funds through real estate investment trusts (REIT), which the Duterte government is currently reviewing to become more enticing to investors by lowering the public float requirements.

Republic Act 9856 or the REIT law was passed in 2009, but had not been tapped for capital raising and investments due to stringent public float and taxation requirements crafted by the previous administration.

The Securities and Exchange Commission is now studying the possibility of lowering the minimum public float to anywhere from 33 percent to 43 percent from the current 51 percent.

http://www.philstar.com/business/2016/08/08/1611053/sm-awaits-government-ok-manila-cebu-reclamation