The government is expected to earn a total of P205.76 million in rental and parking fees from the 2.2 hectare Mile Long property in Makati City from the time it took over its management in mid-2017 up to January this year.
A report to Finance Secretary Carlos Dominguez III by the Privatization Management Office (PMO) showed that the government has so far collected P262.68 million from August 2017 to January 2020 from tenants occupying the Mile Long Property, and is expected to collect another P2.56 million in receivables.
This brings the actual and estimated total collections from the prime lot to P265.25 million as of January 2020, said Chief Privatization Officer Gerard Chan of the Department of Finance (DOF)-attached PMO.
Deducting actual and estimated expenses amounting to P59.48 million nets an income of P205.76 million over the last 28 months that the PMO has been managing the property, Chan added.
Dominguez has commended the PMO at a recent DOF executive committee (Execom) meeting for efficiently managing the property, which is now almost 73 percent occupied as of January 2020.
This Mile Long property has a total of 312 rental units, of which 227 are occupied by 131 establishments, and leaving 85 units available for occupancy.
Chan said 22 of these available units are reserved for the Supreme Court, which has signified its intention to house some of its offices in the Sunvar Plaza portion of the Mile Long lot.
He said earlier the government has so far been earning around P7 million a month in net income from the Mile Long property since the government took over its management in August 2017 or two years ago.
In contrast, the government was able to collect nothing in rental fees from this prime Makati lot’s former lessee—Sunvar Realty Development Corp. (SRDC)—for 14 years prior to PMO’s takeover in 2017 owing to the then-pending legal case over the property.