Foreign and local developers including Ayala Land Inc. and SM Prime Holdings Inc. have expressed interest in developing a five-hectare property adjacent to the Mactan Cebu International Airport into a mixed-use real estate project.
Louie Ferrer, president of GMR Megawide Cebu Airport Corp., the operator of Mactan Cebu International Airport, said the company presented the master plan for the prized property to various real estate companies.
GMR Megawide expects to complete the selection process for a real estate partner over the next two months.
GMR Megawide is a Filipino-Indian venture that won the contract to expand and operate MCIA.
Under the plan, the five-hectare property will be leased to the winning bidder, which in turn will develop the property beside the airport into commercial development with hotels, malls, casino and parking areas.
Ferrer said the winning bidder needed to obtain a gaming license from state-owned Philippine Amusement and Gaming Corp. for the casino portion of the project.
The mixed-use development should be completed by 2018, in time for the first phase of the modernization of MCIA.
The five-hectare property is a part of the 25-year contract for the expansion of the Mactan Cebu International Airport which GMR Megawide bagged in 2013 when it submitted a winning bid of P14.4 billion.
The contract involved the renovation of Terminal 1 of Mactan Cebu Airport and the design, financing, construction and operation of Terminal 2.
Construction of Terminal 2 started in 2015, which would increase the airport’s overall passenger capacity to 12.5 million passengers a year from 8 million in 2015.
The expansion will also enable MCIA to host more flights from Cebu.
MCIA hosts a daily service to Dubai via Emirates, a non-stop service to Los Angeles with Philippine Airlines, a direct flight to Fujian province in China via Xiamen Airlines and a daily service service to Taipei with Eva Air.
Domestic services also rose with both Cebu Pacific and Philippine Airlines increasing the number of scheduled flights.
GMR Megawide said it was also interested in bidding for other airport projects the Duterte administration would bid out, including the P108-billion bundled airport projects and the P74.56-billion privatization contract of Ninoy Aquino International Airport.
Megawide set a net profit guidance of P1.9 billion this year, up 26.6 percent from P1.5 billion in 2015.
Net income in the first half jumped 49 percent to P1.2 billion from P790 million a year ago, on the back of record revenues.
Consolidated revenues in January to June climbed 77 percent to P10.07 billion, with revenues from construction accounting for P9.17 billion or 91 percent of total revenues.
New contracts in the first six months reached P12.40 billion, bringing its total order book to P42.29 billion.