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).
“Joint development ang mangyayari. Government will contribute the land tapos si developer ‘yung magde-develop ng building then later on maybe maghahati tayo sa income. ‘Yun ang initial na nasa isip ni Secretary,” (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’s 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.
“Wala pa tayong projection on the revenue. We’ll have to get a financial adviser to handle the numbers kung magkano ‘yung potential (There are no projections for revenue. We’ll need a financial adviser to estimate the potential),” he said.
The initial redevelopment plan proposal is for a mixed-used residential and commercial development including offices and a transportation hub.
“We divided it (Mile Long) into four blocks. ‘Yung unang plan is to bid it out in phases, para tumaas ng konti ‘yung price. Hindi siya i-bid out ng buo (The initial plan is to bid it out in phases to make the property’s value appreciate. It won’t be bid out at once),” he said.
“This is the biggest (PMO asset in terms of land). This is giving us the biggest earnings, it’s also a very prime location,” 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’s 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 “if we can get BCDA on board to start.”
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