Japanese Village Facility, city offers lot free for 5 years

CEBU, Philippines - The Japanese investor who is planning to build a P1.4 billion worth of retirement facility at the South Road Properties would get free rent from the Cebu City government for the first five years.

This is the first time the city government will give such privilege since the start of the development at the SRP.

Councilor Gerardo Carillo, chairperson of the Japanese retirement facility ad hoc committee, said they are giving ILand Way Philippines Inc. such incentive knowing the rise of economic activity at the SRP within the given period.

“We wanted them (Japanese investor) to conduct the operation immediately and invite Japanese retirees because we want our Cebuanos to be hired, as they are our priority mao na important,” he said.

However, Carillo said failure to conduct activity in five years will terminate the lease contract, and everything installed on the property will be forfeited in favor of the city government.

The ad hoc committee together with the executive department proposed to the investor a P100 per square meter lease higher than the original proposal of the appraisal committee of P50 per square meter floor price.

The Iland Way Philippines has proposed a rent of $0.5 per square meter or equivalent to over P20 for the 12,500-square-meter lot.

In the sixth year, Carillo said the rental fee will increase to two percent of P100 per square meter rental fee after every five years until succeeding years of the contract.

Carillo stressed that the agreement limits to the partnership with the Japanese investor and Joint Venture Corporation (JVC) and is non-transferrable.

ILand Way Philippines and Aquila Primary Corporation have established a JVC with the Primary Properties that would set up a retirement facility housing 1,125 Japanese retirees.

“If transferred, the contract will also be terminated,” Carillo stressed adding that the lot title of the facility will not be given to the investors.

Carillo further said the terms and conditions will be stipulated in the contract, however, the proposal has to be presented first to the businessmen for consideration.  

Moreover, he said the construction of the facility need not subject to bidding as a lease contract.

The executive department will submit the lease contract to the City Council for approval. — (FREEMAN)