Sunvar Realty said it paid P16 million for its 50-year contract with the Philippine Development Alternatives Foundation Inc. (PADF) which was then known as Technology Resource Center Foundation Inc. (TRCFI).
Sunvar Realty president Charlie Rufino said the original contract was for a period of 25 years, renewable for another 25 years. The renewal "became automatic when we paid (the rental) for the full 50 years" amounting to P16.8 million, Rufino said.
According to Rufino, the lease price was equivalent to P700 per square meter at a time when rates along Pasong Tamo were quoted at around P1,250 per square meter.
The biggest beneficiary, Rufino said, was PADF which was subleasing the property for P1 per square meter per year from the National Power Corp. (Napocor), the owner of the lot.
Rufino said that aside from the P16.8-million advance rental, Sunvar invested at least P100 million for the development of the area which is now known as Mile Long or the Strip.
Aside from its lease agreement with Sunvar, PADF holds live contracts with 268 individual residents of Ecology Village. It also has contracts with the Makati Post Office and the Makati Fire Department.
Recent reports indicate that Napocor will no longer renew its lease contract with PADF and has lined up the property for privatization in line with the Electric Power Industry Reform Act (EPIRA).
Tenants of Sunvar Plaza have expressed concern that the PADF will abandon them. PADF chairman and president Agnes Devenadera said they could only work within the limitations and obligations within their contract with the Napocor since they could not overturn the decision of Napocor or the National Government.
The tenants urged PADF to support them "since it was PADF that signed the contract with us. But the Napocor should not play dumb about our situation and that of the residents of Ecology Village."
On the other hand, Devenadera said they might be able to get renewals subject to mutual agreement.