THE DEPARTMENT of Finance (DoF) has no plans to sell the 2.2 hectare Mile Long property in Makati, noting that the government has earned a net P142.6 million since taking over the asset in August 2017.
“We never had any plans to sell Mile Long,” Finance Secretary Carlos G. Dominguez III said in a text message on Wednesday.
In a statement, the DoF said that generated P185 million in rents over 21 month, against expenses of P42.46 million. The Department said that the property is earning around P6.7 million on average per month.
“That’s roughly (an income) of P7 million a month from zero,” Mr. Dominguez III was quoted as saying in the statement.
The Mile Long property was previously leased to Sunvar Realty Development Corp. for 14 years, generating zero revenue for the government, according to Mr. Dominguez.
Mr. Dominguez noted that Sunvar, owned by the Rufino and Prieto families, refused to vacate the prime real estate in 2002 after the lease contract expired.
According to the statement, Gerard L. Chan, Chief Privatization Officer of the DoF’s Privatization and Management Office (PMO), said that the property has 128 establishments occupying 219 of its 309 units as of June, for a 71% occupancy rate.
According to Mr. Chan, the government is also earning from the three parking areas of Mile Long that are being leased out.
In 2017, President Rodrigo R. Duterte said that he wanted to sell the property to generate funds to build housing for soldiers. — Reicelene Joy N. Ignacio