SM group allots P500M for Clark mall expansion

CLARK FREEPORT, Pampanga- The Clark Development Corp. (CDC) announced yesterday that Premier Central, Inc. (PCI) has allocated P500 million for the expansion of its SM mall here.

The CDC and PCI have signed a “supplemental lease agreement” for the mall’s expansion that would cover 5.5 hectares to extend the present SM City mall near this freeport’s main gate at the Balibago commercial district in Angeles City. The initial mall, which also cost some P500 million, has become a favorite destination of tourists and local folk.

“Under the new agreement, PCI will establish and operate a mixed-used facility for office, retail, commercial, leisure, entertainment and hotel, and other tourism-related businesses and projects,” the CDC said.

It noted that “the 50-year lease agreement is expected to generate about 2,000 new jobs and pour in a minimum investment of P500 million”.

CDC president Liberato Laus and PCI president Henry Sy Jr., through his representative, PCI senior vice president Jeffrey Lim, signed the agreement.

“The minimum guaranteed lease for lands for the mall project was pegged at $.30 per square meter per month to start on the third year and to escalate by 10 percent on the eighth year, and every three years thereafter,” the CDC also said.

The CDC noted that “the agreement also entitles the PCI to non-payment of lease rentals for a period of two years, known as the grace period, from the signing of the agreement.

“In addition to guaranteeing a minimum investment of P500 million, PCI shall also, on a best effort basis, hire at least 70 percent of its qualified employees from Central Luzon,” the CDC added.

The PCI is expected to submit a detailed business development and construction plan for its extension plans within six months from the execution of the agreement.

In 2003, PCI leased 16.5 hectares where SM Clark is now located, for 25 years, renewable for another 25 years.

The initial agreement provided the option for PCI to also lease an adjoining 5.5 hectare area for expansion projects.

Apart from its mall here, PCI has another SM City mall in San Fernando, some 18 kilometers away.

The PCI’s fresh investment at this freeport boosts this freeport where total investments was estimated at about P80 billion, a 600 percent rise from the last year’s estimate.

Investors at Clark now employs some 50,000 workers, mostly from Central Luzon.