RP signs 50-yr lease contract for 2 properties in Japan

The Department of Finance (DOF) has signed a 50-year lease contract with Berg Company Ltd. Inc. for two Philippine-owned properties in Japan.

The contract involves service and development agreements for Naniwa-Cho and Obanoyama properties both located in Kobe prefecture.

Finance Undersecretary Jay Singson said Berg submitted the highest net present value of Y759.319 million. The notice of award was issued on Jan. 25.

"The Berg contract has been awarded already. The (finance) secretary (Margarito Teves) signed the agreements already. That’s for the Kobe properties," Singson said.

The DOF, however, has yet to award the property in Nampedai, Japan.

Singson said they just signed a lease agreement because they are not allowed to sell the properties.

Based on the 50-year contract, the development and construction in the properties should not exceed 36 months.

The first property is located at 63 Naniwa-Cho, Kobeshi, Hyogo with an area of 764.7 sq meters.

The property is in a commercial district and bounded by multi-storey office buildings. The lot has a flat terrain and is covered by a shadow restriction.

For the Obanoyama property, Berg submitted a financial proposal with a highest net present value of Y449.596 million.

The property, which is located at 980-2 Shinohara, Obanoyana-Cho, Noda-Ku, with an area of 3,014 sq meters, is presently unoccupied. The lot commands a panoramic view of the Osaka port and is located in an upper middle-class residential area that allows first grade, mid-rise structures.

It is bounded on the East and South by an exclusive university for women (Kobe Shoin Jyoshi Gakuin University), on the west by a boy’s high school (Rokko High School), and on the north by a high-end residential neighborhood. There are shadow and height restrictions on the land.