SMC Infrastructure, a unit of Ramon Ang-led San Miguel Corp. (SMC), has sealed a 25-year lease agreement with the Philippine Amusement and Gaming Corp. (Pagcor) to use the gaming regulator’s 15-hectare Nayong Pilipino property for the conglomerate’s airport development project.
In a statement on Monday, Pagcor said SMC would use 13 hectares of Nayong Pilipino to put up infrastructure that would “complement airport requirements.”
The property in Pasay City is located near Ninoy Aquino International Airport (Naia), the country’s premier gateway that is now being operated by a SMC-led consortium.
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Pagcor did not disclose the value of the lease agreement but that SMC has turned over nearly P100 million representing advance rentals and security deposits.
Major consideration
For the remaining two-hectare portion of Nayong Pilipino, Pagcor said SMC agreed to construct the agency’s new corporate office building valued at P2.45 billion—which was a “major consideration” of the contract.
The building will span 40,000 square meters (sq m), with an additional 15,000 sq m allotted for fit-out space. The construction of the new office will be fully financed by the conglomerate.
“For many years, Pagcor has operated across various rented locations, with our employees spread out and often working under less-than-ideal conditions,” Pagcor chair and CEO Alejandro Tengco said.
Recall that the SMC-led New Naia Infrastructure Corp. (NNIC) wants to build a new passenger terminal within the Nayong Pilipino complex to ease congestion at Naia.
Improvements
Within the first three to 12 months of NNIC’s takeover of the Manila airport, it promised to install new toilets and refurbish existing comfort rooms; place additional seating capacity; install more air-conditioning units; and enable reliable high-speed internet.
Other plans in the short-term include improved retail and food and beverage experience; power redundancy; repair of existing walkalators, escalators and elevators; upgrading of X-ray machines; and road expansion to terminal.
Within four to five years, NNIC said they would expand annual terminal capacity from 35 million passengers to 62 million.
For its part, Pagcor expects to collect fresh revenues from the deal.
“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,” Tengco said.