By Iris C. Gonzales (The Philippine Star) Updated June 08, 2010 12:00 AM
MANILA, Philippines - The Government Service Insurance System (GSIS) and publicly listed Megaworld Corp. have forged an agreement to develop a P3.5-billion condominium project within the Cultural Center of the Philippines complex in Pasay City.
GSIS president and general manager Winston Garcia bared the agreement in a press conference in Cebu during the weekend, adding that the condominium project is a lucrative investment for the pension fund.
He said that from an equity investment worth P400,000, the pension fund’s investment is expected to grow to P1 billion.
Under the joint venture agreement signed between the two parties last week, GSIS would contribute a 7,741-square meter property adjacent to the historical Coconut Palace to be developed by Megaworld into a mixed-use residential project.
Megaworld, owned by taipan Andrew Tan, has agreed to shoulder the cost of the development of the condominium project. Turnover is expected to be in 2014.
“Our joint project with Megaworld will have a 60,000-square meter saleable area. It is a very exciting project for us. This is the kind of residential condo project that the reclamation area needs,” Garcia said. He said the project involves the construction of three 20-storey buildings or a total of roughly 300 units.
GSIS and Megaworld agreed to a sharing ratio in the net saleable area.
The joint venture forms part of the GSIS’s acquired assets disposition program where it forms a strategic partnership to develop its properties.
In April 2008, GSIS entered into a joint venture agreement with San Miguel Properties, Inc. (SMPI) for the development of a P1.7-billion serviced apartment in Makati City. The hotel development project will be put up on a 2,615-square meter GSIS property adjacent to Greenbelt 1 in Legazpi Village, Makati City.
In 2008, the pension fund struck a deal with SM Development Corp. for the development of a GSIS property near the Baguio Convention Center. The joint venture calls for the development of a condotel project dubbed “Baguio Air.” SM would finance and undertake the constructions while GSIS would provide the land.
Megaworld’s residential condominium projects, meanwhile, include the Once Central, Greenbelt Madissons, One Lafayette Square, Paseo Parkview Tower, Forbeswood Heights, Woodridge Residences, Mckinley Hill, and the Garden Villas.