San Miguel Corp. (SMC), led by tycoon Ramon S. Ang, secured a 25-year lease agreement with state-run Philippine Amusement and Gaming Corp. (Pagcor) on Dec. 12 to advance the project.
A key aspect of the deal is the upcoming construction of Pagcor’s new corporate office building, set to occupy two hectares and valued at P2.45 billion.
The 40,000-square-meter building, with an additional 15,000 square meters for fit-out, will modernize Pagcor’s operations.
“It will be fully financed and built by SMC at no cost to Pagcor,” Alejandro H. Tengco, Pagcor chair and CEO, said in a statement.
“This project will be more than just a structure,” the Pagcor chief added. “It reflects Pagcor’s commitment to creating a world-class work environment for its employees; a reflection of our identity, core values and aspirations.”
The lease agreement designates 13 hectares of Pagcor’s 15-hectare Nayong Pilipino property for SMC’s initiatives, primarily focused on developing infrastructure to support airport operations, in consideration of the office building construction and rental terms.
During the contract signing, Ang personally turned over to Pagcor checks for nearly P100 million representing advance rentals and security deposits.
SMC is the main investor in a consortium that took over the operations and rehabilitation of Manila’s Ninoy Aquino International Airport.
Ang, the chair and CEO of SMC, promised a significantly improved experience at NAIA while noting that more extensive upgrades could take several years to complete.
“Aside from the rental for the 13-hectare property, Pagcor also expects additional revenues from renting out unused portions of the new corporate office once it is completed,” Tengco said.
