Govt nets P142.6-M income from Mile Long
Credit to Author: MAYVELIN U. CARABALLO, TMT| Date: Wed, 17 Jul 2019 16:20:32 +0000
THE government has netted more than P142 million since it took over the management of the 2.2-hectare Mile Long property in Makati City, the Department of Finance (DoF) reported on Wednesday.
In a statement, the Finance department quoted Gerard Chan, chief privatization officer of its Privatization Management Office, as saying that the government has earned a gross income of P185 million in rental fees since taking over the property’s management from Sunvar Realty Development Corp. in August 2017.
Deducting expenses totaling P42.46 million from August 2017 to June 2019 yields a net income of P142.6 million.
Chan said the government’s net earnings of P142 million in rental fees over a 21-month period from Mile Long represents an average profit of about P6.7 million a month.
“That’s roughly (an income of) P7 million a month from zero,” Finance Secretary Carlos Dominguez 3rd was qouted as saying during a meeting.
He was referring to the 14 years the government was earning nothing from the property because it was embroiled in a legal battle with Sunvar, which refused to vacate the property even after its lease contract expired in 2002.
Chan said that, as of June, 128 establishments now occupy 219 of the 309 available units in Mile Long, representing a 71-percent occupancy rate.
The government also earns from leasing out the three parking areas in the property, he added.
Mile Long is made up of several parcels of land between Pasong Tamo (Chino Roces) Ave. and Vito Cruz (Pablo Ocampo) St. Extension in Makati City, with a total area of 125,607 square meters.
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