THE Bases Conversion and Development Authority (BCDA) said it has received an unsolicited proposal to lease and develop the 6,647-square meter iconic Mile Hi Property in Camp John Hay.
BCDA said other bidders are now welcome to top the original proponent’s bid through a Swiss challenge set between June 25 and July 10.
In a “Swiss Challenge,” a public authority that has received an unsolicited bid for a project publishes it and invites other parties to offer superior proposals. The practice is intended to encourage competition.
BCDA in a statement on Wednesday said the consortium of real estate companies Istana Development Corp. (IDC) and Meridian Commercial Centers Inc. (MCCI), both of which are registered with the Philippine Securities and Exchange Commission, has been named the original proponent for the privatization of the commercial facility currently being managed by John Hay Management Corp., a subsidiary of BCDA.
The BCDA did not disclose the consortium’s offer but said other bidders can top the original proponent’s bid through a Swiss challenge set between June 25 to July 10.
The terms of reference (TOR) of the bid documents posted on the BCDA website show the winning proponent should commit a minimum investment of P205 million for the restoration, renovation and redevelopment of the property.
The BCDA said the 25-year lease shall have a minimum annual fixed lease payment equivalent to P2,100 square meter per year, inclusive of 12 percent value-added tax (VAT), starting from year one of the lease and subject to an escalation rate of 3 percent.
The Mile Hi property, named for its unique elevation approximately one mile (1.6 kilometers) above sea level, was once a popular snack bar and indoor recreation center featuring a bowling alley, billiard, ping-pong tables, and arcade games.
The site will be redeveloped into an eco-hostel with upscale retail and dining spaces along Sheridan Drive in Camp John Hay. The winning bidder will be announced on July 28, the TOR show.
