Rethink for Metro Pacific
Metro Pacific, First Pacific's flagship in the Philippines, has returned a 64-hectare plot within the 214-hectare Fort Bonifacio project in Manila to the country's government.
The move freed Metro Pacific - via Bonifacio Land Corp - from paying 8.8 billion pesos (about HK$1.69 billion) it owed the government.
The sum is part of Metro Pacific's 39.2 billion peso bid for the project it won in 1995.
The project is developed by Fort Bonifacio Development Corp, which is 55 per cent owned by Bonifacio Land and 45 per cent owned by the government-controlled Bases Conversion Development Authority.
Fort Bonifacio Development also will receive from the government four plots in another development and assets worth 1.1 billion pesos.
As a result, Bonifacio Land's outstanding liabilities will fall to five billion pesos from 13.7 billion pesos. Its assets will also drop to 31 billion pesos from 40 billion pesos.
The plot return follows talks between Fort Bonifacio Development and the conversion authority, which began when it became clear the 64-hectare plot would not be handed over to Fort Bonifacio Development.
The conversion authority now proposes to develop the plot into an information technology special economic zone.