Trump eyes partnership with BCDA - May 03, 2007

Inquirer Money / Breaking News
http://business.inquirer.net/money/t…ticle_id=63795
Trump eyes partnership with BCDA

By Ronnel Domingo
Inquirer

Posted date: May 03, 2007

MANILA, Philippines — More high rollers in real estate are looking at real estate held by the government’s Bases Conversion Development Authority (BCDA), with exploratory talks underway with flamboyant property tycoon Donald Trump on possible joint ventures, BCDA president Narciso Abaya said.
Abaya said in a telephone interview that the discussions with Trump were preliminary, details of which he was not at liberty to give.

An Inquirer source said executives of Trump Organization, which includes hotel and casino operator Trump Entertainment, made a presentation through a video conference with BCDA officials a week ago.

After overcoming bankruptcy from previous investments, Trump owns more than 18 million square feet of prime Manhattan real estate.

Abaya said a possible stumbling block to a partnership was that the BCDA, which oversees development of former military lands, is required to hold competitive biddings before it can go into deals with the private sector.

“BCDA is not allowed to go directly in a partnership,” he said. “This is the same issue that is holding back [BCDA] from signing a deal with the Shanghai Shimao group.”

The proposed deal with the Shimao group, one of China’s top real estate developers, involves a $2-$4 billion project to erect a high-end hotel and mixed-use buildings in the Bonifacio Global City, near the Makati business district, for which a memorandum of understanding was signed in March.

The BCDA says the memorandum of understanding provides for detailed studies on future joint development projects that would make the Bonifacio Global City a key international business district.

The deal proper was supposed to have been signed during President Gloria Macapagal-Arroyo’s visit to China last month.

Abaya said he and other BCDA officials made a concurrent trip to China to discuss how to address the requirement for a competitive bidding. “This is one of the kinks we are trying to iron out before any contract can be signed with the Shimao group,” he said.

When asked whether the same issue would be a hurdle for a possible partnership with the Trump Organization, Abaya said, “Yes.” With INQUIRER.net