Ayala Group welcomes audit of Technohub lease, says contract 'fruitful, beneficial'

Ayala Land Inc. (ALI) has welcomed the proposed audit of its lease agreement with the University of the Philippines regarding the UP Ayala Land Technohub, as the company said the contract is "fruitful and beneficial" for the both parties.

"We welcome a transparent review and assessment of our partnership with UP," the company said in a statement.

The statement is in response to a comment of presidential spokesperson Salvador Panelo that he wants to look into the lease arrangement between UP and the Ayala Group.

"Parang lumalabas na 'yung buong lugar na 'yun is being rented by the Ayalas at less than P20 per square meter for 25 years. Eh kung totoo 'yun eh 'di malaki na naman ang problema," Panelo said Sunday.

In response, ALI said both parties agreed that UP will receive a total amount of P10.23 billion under the 25-year contract—P4.23 billion in lease payments equivalent to P171 per square meter, and P6 billion in investments for 16 commercial buildings.

"We believe this development has been fruitful and beneficial for UP, ALI, and the community," it said.

ALI said it entered into the lease agreement with UP in 2006, after two failed bids and an invitation for a negotiated proposal to nine real estate developers. Operations then began two years later in 2008.

"Only ALI submitted a proposal and committed to meet the very specific parameters set out by UP — a campus-type development with a minimum of 10, three- to four-story buildings catering to IT companies," it said.

Data from the ALI website indicates that the UP Ayala Technohub has a total gross leasable area of 156,708.75 square meters, with an average floor plate of 2,800 square meters for all buildings.

"After 2033, UP as owner, will receive 100% of the buildings' rent. UP also continues to own the land which has appreciated in value since the start of the partnership," said ALI.

The company also clarified that only 20 hectares out of the 37-hectare property can be developed, given that four hectares remain with UP and 13 hectares are allocated for open space.

Manila Water Company Inc., another Ayala-led company, along with its competitor Maynilad Water Services Inc. has recently caught the ire of President Rodrigo Duterte for supposedly onerous deals with the government. —Jon Viktor Cabuenas/KG, GMA News