Government generates P205 million rental income from Mile Long property

MANILA, Philippines — The government’s net profit from the 2.2-hectare Mile Long property in Makati City amounted to P205.76 million since it took over the asset in 2017 until January this year, the Department of Finance (DOF) said yesterday.

Citing a report from Gerard Chan, the chief privatization officer of the Privatization and Management Office (PMO), the DOF said the government collected P262.68 million in rental and parking fees from tenants occupying the Mile Long property since August 2017 until January 2020.

The DOF said another P2.56 million in receivables are expected to come in for the month of January, which will bring the property’s total revenues to P265.25 million.

Deducting operating expenses amounting to P59.84 million, the DOF said Mile Long’s total net income would reach P205.67 million over the last 28 months that the PMO has been managing the property.

Finance Secretary Carlos Dominguez commended the PMO for efficiently managing Mile Long, which is about 73 percent occupied as of January.

The property has 312 rental units, 227 of which are occupied by 131 establishments, according to the DOF. This leaves 85 units available for occupancy.

The DOF said 22 of these available units are reserved for the Supreme Court, which has signified its intention to house some of its offices in the Sunvar Plaza portion of the Mile Long lot.

Prior to the PMO’s takeover of the property, the DOF said the government was able to collect nothing from the lot’s previous lessee – Sunvar Realty Development Corp. for 14 years.

The DOF said Sunvar refused to vacate the property even after its lease contract had expired in 2002.

In August 2017, Makati regional trial court ordered Sunvar Realty to vacate the Mile Long property for owing the government P1.656 billion in unpaid rentals. 

Last January, President Duterte issued Administrative Order 21, which ordered the PMO to redevelop Mile Long.

The President noted that the development of the Mile Long property, “will greatly contribute to the generation of revenues for priority programs of the government, including among others, the pension program of military and uniformed personnel.”

The AO specifically pointed out that the proceeds will be used for the pension program of military and uniformed personnel, subject to the budgetary process and applicable laws, rules and regulations.

Dominguez said earlier the DOF, as well as other concerned agencies are ready to implement the instructions of the President to redevelop Mile Long.