Baguio City Mayor Benjamin Magalong has spoken candidly about SM Prime Holdings Inc.’s withdrawal from the Baguio Public Market redevelopment, and his message makes one thing clear: the city lost a rare opportunity.
In a video message, the mayor described SM’s exit as the result of “kasinungalingan” and “malisyosong intriga” that discouraged the company from pursuing what he believed was meant to be a legacy project for the community. He also reiterated that SM had been consistently supportive of the city and its residents over the years.
“Maganda naman, laki-laki nga ng tinutulong ng SM sa atin,” the mayor stated, noting SM’s significant contributions to civic programs and community events. He added that SM has long provided venues for Red Cross activities, local artists, and senior citizen gatherings free of charge, support that he emphasized should not be easily dismissed or forgotten.
A Relationship Worth Preserving
Mayor Magalong stressed that despite the controversy, the city government intends to maintain a positive relationship with SM and other business partners. In his view, the withdrawal did not stem from corporate greed, but from constant attacks and misinformation surrounding the project.
“So, kailangan natin i-maintain lang yung mga relationship natin sa mga establishment dito, business establishment, kasi hindi naman pwedeng putulin natin yung ating relasyon sa kanila kasi reasonable naman yung kanilang pag-withdraw,” he explained.
The mayor said the environment surrounding the project became too toxic as false narratives spread, including allegations of privatization and anti-vendor policies that SM had repeatedly denied.
“Isipin mo, five years na tinatrabaho natin pero nasisira lang dahil sa mga kinalat na kasinungaling at intriga,” Mayor Magalong lamented, adding that any investor would naturally hesitate under such conditions.
A Rare “Legacy Project” Now Lost
Perhaps the strongest signal of what Baguio lost came when the mayor spoke about the terms SM agreed to accept.
“Oo naman, malaki,” he replied when asked if SM’s exit was a great loss. He went on to explain that SM had been willing to move forward with an unusually low return.
“Kasi sayang yung modernization natin. Tapos, saan ka makakita na ang isang kumpanya mag-iinvest ng kanyang IRR is 4% lang…usually yan 7%,” he said, calling the partnership a “legacy project” designed to benefit the community long-term.
For Mayor Magalong, this was not a case of a corporation squeezing a city for profit, but a rare instance of a major investor choosing lower returns in order to help modernize a critical public space.
Rebuilding Trust After a Setback
The city will now reopen the project for new proposals. Still, the mayor warned that investor trust may already have been damaged.
“Ganun din talaga…Siyempre mawawalan ng gana yung mga investors,” he said, referring to the misinformation and false narratives that surrounded the deal.
While the project may continue someday, Mayor Magalong’s remarks highlight a deeper truth that losing SM did not just cost Baguio a redevelopment partner, it may have cost the city the confidence of businesses willing to invest in its future.
RELATED: [SM Withdraws From Baguio City Public Market Redevelopment]
