Located in a 300-hectare plot of reclaimed land, called South Road Properties (SRP), the acquisition spans 26 hectares, which the companies had won for P10 billion in an auction last month.
ALI's chief finance officer Jaime Ysmael clarified that the project is in no way a joint development or a partnership.
"It is not really a joint venture development but only a joint bid. We will carve out areas for both companies," said Ysmael.
"We will just plan it together but we will do our separate projects," explained Ysmael; "We'll just masterplan it together so we can maximize the use so that the development is coordinated."
Cebu Holdings Inc., a local developer, stands as ALI’s official joint partner within the SRP. According to Ysmael, ALI will likely work on a mixed-use development, with the main component being residential condominiums.
The SRP is also home to SM Seaside Cebu, a P30-billion shopping mall with a gross floor area of 470,000 square meters. ALI and SM Prime have agreed to develop retail components that will complement the mall.
"[G]iven the size of the mall that we have now, the SM Seaside City Cebu, I think the retail development of this new area will be more like strip-type. I don't think it will be the complete size of what we have now. But I think both us and Ayala recognize this given the size of the development," issued Jeffrey Lim, executive vice president of SM Prime.
Lim also stated that ALI and SM Prime are gearing up to unveil the masterplan within the next few weeks.
The provincial government of Cebu auctioned 45.2 hectares of SRP last month. Twenty-six hectares went to ALI and SM; the remaining 19 was acquired by Filinvest Land Inc. (FLI) for its mixed-use development, City di Mare.