In light of conversations around the
allegations of illegal occupancy, and the government bid to eject Sunvar Realty
Development Corporation (Sunvar) from the
2.9-‐hectare property located between De la Rosa and Arnaizstreets in Legazpi
Village, we at Sunvar wish to clarify that:
ON THE PROPERTY AND EXPANDED LEASE-‐AREA
·
Back in December
1977, National Power Corporation and the government leased its 125,607 square
meters of undeveloped property, located from Bangkalto Dasmarinas Village in
Makati City, to Technology Resource Center Foundation Inc. (TRCFI). Sunvar was
interested in sub-‐leasing only 3,000 sq. m. of the TRCFI-‐leased property to
serve as parking and access for its Makati Square shoppers and movie goers.
TRCFI, however, insisted on having the entire 22,924 sq. m. property rented by
Sunvar.
·
This expanded
hectarage would not boost Sunvar’s needed access as this property’s only
entrance is a narrow opening facing Arnaiz Street, with the front blocked by
Amorsolo creek, and part of the area across Makati Medical Center occupied by
informal settlers. But needing the Amorsolo access, Sunvar agreed in August
1980 to the all-‐or-‐nothing long-‐term sub-‐lease agreement with TRCFI—leasing
a strip that had no road, clean water, drainage, electricity or communication.
FULL ADVANCE PAYMENT FOR 50-‐YEAR CONTRACT
·
Sunvar paid TRCFI
the full advance of P16.8 million to cover the entire lease period; an initial
period of nearly 25 years, renewable for another 25 years at Sunvar’s exclusive
option. This payment is equivalent to acquiring 14,000 sq. m. of buildable
property in Legaspi Village.
·
The sub-‐lease
agreements between Sunvar and TRCFI—annotated in the title of the government to
inform land owners and the public—provided that should Sunvar decide to
exercise the option to renew the sublease, it shall notify the lessor in
writing not less than 6 months before end-‐2002. Last April 2002, 8 months
before the first 25 year lease expired, Sunvar notified Napocor, thegovernment
as well as TRCFI (since dissolved, with functions assumed by the Philippine
Development Alternatives Foundation or PDAF) on exercising its exclusive option
to extend the lease for another 25 years. Sunvar likewise tendered payment of
rentals for the extended period.
RESPECTING THE SANCTITY OF PUBLIC-‐PRIVATE
CONTRACTS
·
Napocor, mandated by
the government to privatize all its assets, informed PDAF of the non-‐renewal
of the sub-‐lease. PDAF subsequently informed Sunvar. Sunvar responded that
Napocor and the government must honor the lease agreement contract.
MORE-‐THAN-‐FAIR LEASE PRICE
·
The lease price paid
by Sunvar is comparably more than fair, around equal to purchasing the property
at the time, and despite limits on only 50% of the entire area being usable for
building construction. Sunvar developed where possible and subleased the rest
to other building developers with the same rights it had under the TRCFI lease
agreement. And so besides the original intent of Makati Square Amorsolo side
access and parking area, the once barren land was improved with The Gallery
building, Mile Long Theme Center building,
Premiere THX Cinema, and more.
SUNVAR OCCUPIES ONLY A FRACTION OF THE
PROPERTY
·
The occupants on the
government-‐owned 125,000 sq. m. property include not only Sunvarbut also
Ecology Village residents; Makati police headquarters, fire station and post
office; Don Bosco parking lot; and informal settlers. As of this writing, the
government has only publicly stated wanting to eject the occupant that advanced
a P16.8 million lease with a contract until December 2027.
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