THE government has chosen to redevelop the 2.2 hectare Mile Long property along Amorsolo street in Makati City via a four-phase public-private partnership, which the government structuring the project this way to generate recurring income, a senior official said.
Privatization and Management Office (PMO) head Gerard L. Chan said the property is currently being leased to private tenants, generating around P160 million in net income at 70% occupancy ahead of the redevelopment.
Mr. Chan said the redevelopment plan was submitted to the Office of the President and is awaiting the issuance of an executive order officially transferring the project to the Bases Conversion and Development Authority (BCDA).
鈥淛oint development ang mangyayari. Government will contribute the land tapos si developer 鈥榶ung magde-develop ng building then later on maybe maghahati tayo sa income. 鈥榊un ang initial na nasa isip ni Secretary,鈥 (What will happen is a joint development with the government contributing the land and the developer putting up the buildings. Then later on, maybe we will share the income. That is the Secretary鈥檚 initial concept) he said Friday, referring to Finance Secretary Carlos G. Dominguez III.
BCDA will set bidding parameters for potential developers, according to Mr. Chan.
鈥Wala pa tayong projection on the revenue. We鈥檒l have to get a financial adviser to handle the numbers kung magkano 鈥榶ung potential (There are no projections for revenue. We鈥檒l need a financial adviser to estimate the potential),鈥 he said.
The initial redevelopment plan proposal is for a mixed-used residential and commercial development including offices and a transportation hub.
鈥淲e divided it (Mile Long) into four blocks. 鈥榊ung unang plan is to bid it out in phases, para tumaas ng konti 鈥榶ung price. Hindi siya i-bid out ng buo (The initial plan is to bid it out in phases to make the property鈥檚 value appreciate. It won鈥檛 be bid out at once),鈥 he said.
鈥淭his is the biggest (PMO asset in terms of land). This is giving us the biggest earnings, it鈥檚 also a very prime location,鈥 he said.
Mr. Dominuez has said the property, previously leased to Sunvar Realty Development Corp, is now earning an average of P6.7 million per month since the government鈥檚 takeover in August 2017.
Mr. Dominguez has said proceeds from the redevelopment will help fund retirement costs for military personnel.
He also said he wants to start the redevelopment within the year.
Mr. Chan said it is possible 鈥渋f we can get BCDA on board to start.鈥
The legal dispute between Rufino-Prieto family-owned real estate firm was finally decided in a Makati court ruling in favor of the government in August 2017. — Beatrice M. Laforga
