Government sues Rufinos, Prietos over prime Makati property

MANILA, Philippines - The government is suing Sunvar Realty Development Corp. — a realty firm owned by the Rufino and Prieto families — and asking a Makati court to compel them to return the land on which the Mile-Long Arcade sits.

Solicitor General Agnes Devenadera, counsel for the government and the state-owned National Power Corp., has also asked for hundreds of millions worth of damages from Sunvar for what it described as “illegal and unauthorized use and occupation” of the property formerly owned by Napocor located along Amorsolo Street in Legaspi Village, Makati, from Jan.1, 2003 to Mar. 31 of this year.

The Rufino and Prieto families also own The Philippine Daily Inquirer.

In a 13-page complaint signed by Devanadera filed before the Makati metropolitan trial court, the government is asking Sunvar to pay P630 million for its unauthorized use of the land and payment of P10 million a month from April 1, 2008 until the property and its improvements ‘’are vacated and peacefully surrendered.’’

The government and the state-owned power company are the registered owners of the 22,924-square meter property along Amorsolo St. in Legaspi Village in Makati.

On Dec. 26, 1977, it was leased by the government to the now defunct Technology Resource Center Foundation Inc. (TRCFI) for a period of 25 years from Jan. 1, 1978 up to Dec. 31, 2002.

TRCFI subsequently leased a portion of the property located between De la Rosa St. and Arnaiz Ave. (formerly Pasay Road) to Sunvar Realty under a sublease agreement.

In all the agreements between TRCFI and Sunvar, the latter agreed to return or surrender the subleased land, without any delay whatsoever upon the termination or expiration of the sublease contract or any renewal or extension when the agreements expired in December 2002.

During the sublease, Sunvar put up commercial buildings including the Premier Cinema, Mile Long Arcade, Makati Creekside Building, the Gallery Building and Sunvar Plaza.

Technology Resource was replaced by the Philippine Development Alternatives Foundation (PDAF) after the Edsa Revolution in 1986.

On June 3, 2002, Napocor notified PDAF of its decision not to renew the contract of lease. The government through then Senior Deputy Executive Secretary Waldo Flores informed PDAF that it is also not renewing the contract adding that the governent planned to sell the same to raise funds.

PDAF informed Sunvar of the decision not to renew the lease on June 25, 2002. It however took the OSG six years or until Feb. 22, 2008 to advise Sunvar to completely vacate the property. A final notice to vacate dated Jan. 26, 2009   was received by the real estate firm.

“Sunvar, however, obstinately refused to vacate the subject property, and, despite the lapse of the period given, adamantly continued to occupy the same up to the present,” Devanadera said.

“Due to this unreasonable refusal of defendant to vacate the property upon the lease on December 2002, plaintiffs (the government) suffered damages from the loss of use of the subject property,” Devanadera added.