THE government generated a net P205.76 million from rents and parking fees from the Mile Long property in Makati, more than two years after it was vacated by the former leaseholders.
Citing a report from the Privatization Management Office (PMO), the Department of Finance (DoF) said collections totaled P262.68 million between August 2017 and January 2020. Receivables from the 2.2-hectare property total P2.56 million, which would bring the total to P265.25 million.
Expenses for managing the property over 28 months amounted to P59.48 million, Chief Privatization Officer Gerard L. Chan said, leaving the government with P205.76 million.
This was equivalent to a P7 million monthly take for the government, which Mr. Chan said compared with the 14-year period prior to PMO’s takeover during which the government collected nothing.
The property, currently being administered by the PMO, is nearly 73% occupied as of last month, with 131 establishments occupying 227 rental units out of the 312 available.
Of the 85 units left up for rent, Mr. Chan said 22 are reserved for the Supreme Court, which plans to locate some of its offices in the Sunvar Plaza portion of the Mile Long lot.
President Rodrigo R. Duterte ordered the Bases Conversion and Development Authority (BCDA) to re-develop the property, income from which will go to the retirement funds of the Armed Forces of the Philippines and Philippine National Police.
Finance Secretary Carlos G. Dominguez III has said a technical working group is ready to implement the redevelopment plan and that a meeting will be convened this week “to finalize the plans and timetable” of the project.
The group will be made up of representatives from BCDA, PMO, DoF, Department of Budget and Management, and the Bureau of the Treasury.
Earlier Mr. Chan said the plan calls for the redevelopment in four phases via a public-private partnership, allowing the government to generate recurring income during the development period.
The initial proposal is for a mixed-used residential and commercial development including offices and a transportation hub.
The 2.2-hectare property was previously occupied by Sunvar Realty Development Corp. A legal dispute with the Rufino-Prieto family-owned real estate firm was finally decided by a Makati court in favor of the government in August 2017. — Beatrice M. Laforga