By James A. Loyola
Real estate giant Ayala Land Inc. pointed out that the University of the Philippines (UP) is actually getting ₱171 per square meter a month for the lease of UP Ayala Land Technohub — contrary to allegations by a blogger, which was cited by Malacañang, that it is paying only ₱22.00 per square meter.
In a statement, ALI explained that, “This was derived from ₱4.23 billion in lease payments and ₱6 billion investment in 16 commercial buildings for a total amount of ₱10.23 billion over the life of the 25-year contract.”
It added that, “After 2033, UP as owner will receive 100 percent of the buildings’ rent. UP also continues to own the land which has appreciated in value since the start of the partnership.”
In 2006, ALI entered into a lease agreement with UP in the development of the UP Ayala Land Technohub. This was after 2 failed bids and an invitation for a negotiated proposal to 9 real estate developers.
Only ALI submitted a proposal and committed to meet the very specific parameters set out by UP – a campus-type development with a minimum of 10, 3 to 4-story buildings catering to IT companies.
“Since the start of operations in 2008, the ALI-UP partnership has created 50,000 jobs in the development,” ALI said.
The firm further noted that, “only 20 of the 37-hectare property is developable given that 4 hectares remain with UP and 13 hectares are allocated for open space.”
Over the 25-year term of the lease, UP will receive lease payments of ₱1.1 billion (2008 to 2018) and ₱3.13 billion (2019 to 2033) and buildings which cost P6 billion to construct.
Lease payments of ₱4.23 billion for 20 hectares of developable area over 25 years translate to ₱71 per sqm. per month while the ₱6-billion building cost over 25 years is equivalent to P100 per square meter a month for a total of ₱171 per sqm. monthly.