SAN MIGUEL CORP. (SMC) has signed a 25-year lease with the Philippine Amusement and Gaming Corp. (PAGCOR) to use the 15-hectare Nayong Pilipino property in Pasay.
Under the lease agreement, officially signed on Dec. 12, 13 hectares of the Nayong Pilipino property will be used for “SMC’s initiatives, which will mostly include infrastructure to complement airport requirements,” PAGCOR said in a statement on Monday.
San Miguel leads the New NAIA Infra Corp., which took over the operations and maintenance of the Ninoy Aquino International Airport, near where the idle Nayong Pilipino complex is situated.
Meanwhile, the two hectares will be used to build PAGCOR’s new corporate office, which will be fully funded and built by San Miguel, PAGCOR Chairman and Chief Executive Officer (CEO) Alejandro H. Tengco said, adding it will be at no cost to the gaming agency.
It added that the overall cost is P2.45 billion, of which P2 billion will be allotted for building construction and P450 million for fit-out.
PAGCOR said the office building will span 40,000 square meters (sq.m.), with an additional 15,000 sq.m. for fit-out space.
“For many years, PAGCOR has operated across various rented locations, with our employees spread out and often working under less-than-ideal conditions,” Mr. Tengco said.
He added that 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.
When asked for the timeline, the gaming agency said the office building “will commence immediately upon PAGCOR’s final approval of the building plan which is still being finalized.”
SMC Chairman and CEO Ramon S. Ang said that construction of the PAGCOR building “would commence promptly upon PAGCOR’s formal approval of the design.”
“Our goal is to maximize the potential of this property for the public’s benefit. The new PAGCOR headquarters will be a key part of this plan, providing a modern space to support their crucial role in funding government programs that uplift the lives of many Filipinos,” Mr. Ang said.
In the same event, Mr. Ang also turned over checks of nearly P100 million representing advance rentals and security deposits to PAGCOR.