Metro Retail forges joint venture deal with Samar

CEBU, Philippines — Metro Retail Stores Group has entered a P472.90-million joint venture agreement with the Samar provincial government to develop and operate a commercial complex in Catbalogan City.

In a regulatory disclosure to the stock exchange yesterday, the Cebu retail giant said the project involves the construction of a department store and supermarket with 1 movie theater, leasable spaces, convention center, government center, business process outsourcing center, transport terminal and a hotel.

Construction of the department store and supermarket is expected to be completed 18 to 24 months from turn-over of property while the convention center is expected to be completed in 8 months, the Gaisano-led retailer said.

"The joint venture will generate additional revenues to MRSGI and increase the existing GFA footprint of its stores," the company said in the disclosure.

Metro Retail said it would turn over the ownership of the department store and supermarket to the province after 30 years.

The government center with BPO Center is expected to be completed 8 months from turn-over of the property; transport terminal, 6 months; and hotel, 12 to 18 months.

"All revenues to be derived from the operation of the Convention Center, Government Center with BPO Center, and Terminal will belong to the Province. The possession and ownership of the Convention Center, Government Center with BPO Center, and Terminal will be turned-over to the Province after completion of construction," Metro Retail said.

As for the operation of the hotel, the company will get 20% share from hotel operator’s lease rental payments, while the province will get an 80% share. (FREEMAN)