SAN Miguel Infrastructure has signed a lease agreement with the Philippine Amusement and Gaming Corp. (Pagcor) to use 13-hectares (ha) of the 15-ha Nayong Pilipino property in Pasay City for the company’s initiatives, mostly infrastructure that complement airport requirements.
Joey Bondoc, head of research for Colliers Philippines, told Malaya Business Insight the move will support the rehabilitation of the Ninoy Aquino Interna tional Airport.
“The property should further be assessed for other uses including hotel given the revival of the leisure sector,” Bondoc said.
However, given the height restrictions on the property being adjacent to Terminal 2, development will be limited to low to mid-rise projects.
As part of the NAIA modernization, the SMC led-New NAIA Infra Corp. plans to expand the north wing portion of Terminal 2 towards Nayong Pilipino and the Philippine Village Hotel. NNIC won the contract to modernize and operate NAIA.
During the contract signing of the 25-year lease agreement on December 12, SMC chairman and chief executive officer Ramon Ang turned over to Pagcor checks for nearly P100 million representing advance rentals and security deposits.
As part of the lease deal, SMC will fully finance and build Pagcor’s new corporate office building on a two-hectare portion of the property.
“Aside from the rental for the 13-hectare property, Pagcor also expects additional revenues from renting out unused portions of the new corporate office once it is completed,” Pagcor chairman and CEO Alejandro Tengco said in a statement yesterday.
The office building, which will span 40,000 square meters, with an additional 15,000 square meters for fit-out space, is valued at P2.45 billion, comprising of P2 billion for the building construction and P450 million for fit-out.
“This project will be more than just a structure. It reflects Pagcor’s commitment to creating a world-class work environment for its employees; a reflection of our identity, core values and aspirations,” Tengco said.
According to Pagcor, SMC’s Ang assured construction of the building would commence promptly upon the gaming regulator’s formal approval of the design.
“Our goal is to maximize the potential of this property for the public’s benefit. The new Pagcor headquarters will be a key part of this plan, providing a modern space to support their crucial role in funding government programs that uplift the lives of many Filipinos,” Tengco said.
