By Mary Ann Ll. Reyes (The Philippine Star) Updated December 24, 2009 12:00 AM
MANILA, Philippines - Tutuban Properties, an indirect wholly-owned subsidiary of Prime Orion Philippines, has entered into an agreement with the Philippine National Railways (PNR) for the renewal of its lease contract involving a PNR property in Manila.
The PNR property at CM Recto, Manila, covers an area of 200,000 square meters and will be leased by Tutuban for another 25 years beginning Sept. 5. 2014. The lease rental for the entire term is P3.9 billion, plus percentage rental of two percent of gross sales/rental income and 15 percent of rental income on sublease, as well as a one-time fee of P750 per square meter for additional improvements on the leased premises.
The Tutuban property is a 22-hectare piece of property located right beside the heart of Manila’s principal trading district – Divisoria. The property’s proximity to important districts and landmarks such as Divisoria market, Ongpin, Binondo, Escolta, North and South Harbors, Quiapo, among others, makes it a strategic center for business and commerce.
Tutuban Properties’ Tutuban Mall introduced a modern commercial and business environment to the country’s wholesale and retail center. By taking the lead in introducing elements of modern facilities and management organization, Tutuban Mall serves as a frontrunner in the upgrade and redevelopment of Divisoria. The mall is also a pioneer and an expert in “cluster stores” operations and management.
A merger between Philippine Orion Properties Inc. and First Lepanto Corp. in 1989 created Guoco Holdings Phils. Which, in turn, has a subsidiary called Guoco Land which was formed to handle property investments, including the one in Tutuban.
Tutuban Properties was formed under Guoco Land to primarily oversee the development and growth of the 22-hectare PNR property.
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