Gatchalian’s Waterfront gets contract for Clark’s Mimosa

Gatchalian-owned Waterfront Philippines Inc. said it received the other day the notice of award from Clark Development Corp. (CDC) for the lease, development and operation of the 215-hectare former Mimosa Leisure Estate in Pampanga.

In a disclosure to the Philippine Stock Exchange, Waterfront said the issuance of the notice of award was approved by the CDC last July 4.

CDC president and chief executive officer Levy P. Laus said Waterfront will pay the government around P1.5 billion for the contract and will invest P1 billion within a period of five years for the redevelopment of the leisure estate.

Laus said the CDC will earn a minimum annual guaranteed lease starting at P160 million over the 50-year term of the award, which is renewable for another 25 years.

Following the acceptance of the notice of award, CDC and Waterfront will enter into a 90-day memorandum of understanding (MOU) which will mature into a lease agreement upon the delivery of the initial commitments by the Gatchalian-led hotel firm.

Waterfront will initially pay CDC an upfront amount of P770 million within 90 days from signing of the MOU. The amount includes P450 million as the required minimum payment, P160 million as security deposit and P160 million as advance lease rental.

Waterfront was among the 10 entities that bid for the Mimosa estate within the 4,400 hectares former US military facility.

The leisure estate covers a 38-hole world-class golf course, the Holiday Inn hotel, a clubhouse, some 200 Montevista villas, a Pagcor-operated casino and industrial laundry and Veranda Restaurant.

Among the hotels owned by the Gatchalian group include Waterfront Cebu, Waterfront Mactan, Waterfront Insular Hotel in Davao City and the Manila Pavilion Hotel.