By James A. Loyola
Metro Retail Stores Group Inc. has entered into a Joint Venture Agreement with the Province of Samar for a P472 million mixed-use development which will include a mall, convention center, hotel and office spaces.
In a disclosure to the Philippine Stock Exchange, MRSGI said the development will consist of a department store and supermarket with one movie theater and with leasable spaces.
It will also include a convention center; 3. government center with business processing outsourcing (BPO) center; transport terminal; and a hotel.
The project will be developed on a 22,000 square meter parcel of land located at Barangay 07, Poblacion, Catbalogan City, owned by the Province of Samar.
The department store and supermarket (with one movie theater) with leasable spaces, expandable to a community mall, will be completed in 18 to 24 months from turn-over of the property.
The convention center and government center with BPO center to be finished in 8 months from turn-over of the property,the transport terminal in 6 months, while the hotel in 12 to 18 months.
The implementation phase of the Project shall be for a period of 30 years to be reckoned from the start of the commercial operations of the department store and supermarket with one movie theater and leasable spaces.
The total project cost necessary to complete the project is estimated to be in the amount of P472.9 million to be financed by MRSGI.
To realize and fulfill the project, the Province shall contribute to the joint venture a portion of Lot 151-Part consisting of an area of 22,000 sq.m., more or less where it will constructed and established.
The parties have agreed to share in the monthly gross revenues and gross rent, without VAT, from the operation of the department store and supermarket with one movie theater and with leasable spaces.
All revenues to be derived from the operation of the convention center, government center with BPO Center, and Terminal will belong to the Province.
The possession and ownership of the convention center, government center with BPO center, and terminal will be turned-over to the Province after completion of construction.
As for the operation of the hotel, MRSGI will get 20 percent share from hotel operator’s lease rental payments, while the Province will get 80 percent share from hotel operator’s lease rental payments.
Upon expiration of the 30-year period, MRSGI shall turnover to the Province the possession and ownership of the department store and supermarket with one movie theater and with leasable spaces.