Deed of absolute sale for Luneta Hill signed between SM and national government

A Deed of Absolute Sale (DAS) dated September 16 has been signed between the national government and SM Investments Corporation over a 31, 688 sq. m. lot where SM-Baguio now stands despite overlapping city and private interests.


The information was conveyed by one SM Mall manager Marc Janssen Pe to City Building and Architecture Office (CBAO) chief Oscar Flores in a letter dated October 15 purportedly for securing a building permit.

It could be remembered the City Council committee on lands in 2008 was tasked to investigate how SM acquired the property despite adverse claims.

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The investigation was sparked by privilege speeches of erstwhile councilor Rocky Balisong. The former alderman maintained the cyber building lot (fronting Sunshine Park) is owned by Placido Carantes.

On the other hand, the city through Resolution 265-2009 pleaded to then President Gloria Macapagal-Arroyo for the issuance of a proclamation designating lots X-1 and Y-2 for purposes of establishing a “Technology Information Center” under the auspices of the City Government.

SM acquired the properties all located in Residential Section “A” following an auction sale, April 22, 1992, for a bid price of P69,999,995.52 in six separate amortizations ending in 1997.

The DAS provided, “As a result of the survey conducted October 2003 [and] after due consideration of [easements and servitudes in Commonwealth Act 141, area available] for conveyance under this instrument is 31,688 sq. m.”

Said area were more particularly described as Lot Nos. 3-B, 114-A, 128, 115-B, 125-A, 126-B-2, 126-A, X-1 and Y-2.

The DAS was signed between SM attorney-in-fact Carlo Olampay and Aquino as represented by executive secretary Paquito Ochoa, Jr. for the Republic of the Philippines.

Balisong earlier contended the property could have been sold higher than its appraised value.

The property's market value was P1,500.00 per sq. m. SM bought the lot at P2,027.34 per sq. m.

In November 2005, Samuel Peñafiel, then regional executive director of the Department of Environment and Natural Resources (DENR) – Cordillera was ordered by the central office to issue a DAS to SM.

A draft was prepared by DENR-Cordillera but lawyer Erwin Tiamson pointed out the DAS must be in accord to the provisions of Sec. 57 of the 1987 Administrative Code: “Conveyances amounting to at least P50 million shall be executed by the President.”

In 2010, heirs of Carantes entered a fenced portion of the property where SM-Baguio now stands and demanded SM management to vacate the premises.

The heirs also filed complaints of trespassing, grave coercion, theft at the Baguio City Prosecutors Office. Grave threats were also filed against the security agency which guards SM. - (Baguio City online news / by ISAGANI LIPORADA )



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