Metro Retail Stores, Samar LGU partnering in P473-M mixed-use dev’t

Metro Retail Stores Group. Inc. on Tuesday said it signed a joint venture deal with the local government of Samar to develop of a mixed-use complex in the province.

In a regulatory filing submitted by compliance officer Tara Tsarina Retuya, the Gaisano-led MRSGI said the joint venture agreement covers development, construction, and operation of the following projects:

• hotel

• convention center

• transport terminal

• government center with business process outsourcing (BPO) center

• department store and supermarket with a movie theater and leasable space

MRSGI will finance the project cost estimated at P472,904,005.00, while the province of Samar will contribute 22,000 sqm of land in Barangay 07, Poblacion, Catbalogan City.

The company said the project will happen in two phases—construction and implementation.

Once the property has been conveyed to MRSGI all project components are expected to be completed within two years.

“The implementation phase of the project shall be for a period of 30 years to be reckoned from the start of the commercial operations of the department store and supermarket with one movie theater and with leasable spaces,” the company said.

The joint venture with is expected to generate additional revenue for MSGI and increase the existing footprint of its stores in terms of gross floor area.

The company said both parties have agreed to share in the monthly gross revenues and gross rent, without value added tax, from the department store and supermarket as well as the cinema and leasable spaces.

“All revenues to be derived from the operation of the convention center, government center with BPO center, and terminal will belong to the province,” it said.

“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,” it added.

From the hotel, MRSGI will get a 20-percent share from lease rental payments while the province will get 80 percent. —Ted Cordero/VDS, GMA News