Sunvar lawyer: 'We are not squatter'

Sunvar Realty Development Corp. on Friday argued it holds a legitimate leasing contract on the disputed "Mile Long" property in Makati City amid allegations by Solicitor General Jose Calida that the Prieto-Rufino-led developer is a "squatter."

"We would like to emphasize that this is not a 'squatter' deal. We are defending in court a legitimate leasing contract for the property," Atty. Alma Mallonga, who represents Sunvar in the pending case, told GMA News Online.

"Sunvar paid for the land in advance, for that land it leased, that amount that compares fairly with the property," Mallonga said.

Calida slammed the property developer for occupying the Makati property, calling it the "Philippine Daily Squatter," a play on the name of sister company Philippine Daily Inquirer, the broadsheet perceived to be critical of President Rodrigo Duterte and his administration.

The solicitor general claimed Sunvar owed the government P1.656 billion in unpaid rentals, excluding interest.

The Office of the Solicitor General (OSG) filed an urgent motion on June 1 seeking the execution of a 2015 ruling of the Makati City Metropolitan Trial Court Branch 61 against Sunvar Realty Development Corp.

However, Calida claimed the CA justice in charge of making a draft ruling on the motion "sat on it."

In a fact sheet emailed to the media, Sunvar clarified several issues surrounding the 2.9-hectare government property.

"Sunvar paid TRCFI (Technology Resource Center Foundation Inc.) the full advance of P16.8 million to cover the entire lease period; an initial period of nearly 25 years, renewable for another 25 years at Sunvar’s exclusive option," the property developer said.

The payment was equivalent to acquiring 14,000 square meters of buildable property in Legaspi Village, Makati City, according to the developer.

"The lease price paid by Sunvar is comparably more than fair, around equal to purchasing the property at the time, and despite limits on only 50 percent of the entire area being usable for building construction," it said.

Back in December 1977, the National Power Corp. and the government leased its 125,607 square meters of undeveloped property, located on a stretch from Bangkal to Dasmariñas Village in Makati City, to TRCFI.

Sunvar said it was interested in subleasing only 3,000 sqm of the property as parking and access for its Makati Square shoppers and moviegoers.

"TRCFI, however, insisted on having the entire 22,924 sqm property rented by Sunvar," it said.

"This expanded hectarage would not boost Sunvar’s needed access as this property’s only entrance is a narrow opening facing Arnaiz Street, with the front blocked by Amorsolo creek, and part of the area across Makati Medical Center occupied by informal settlers," it added.

Sunvar said it agreed in 1980 to an "all-or-nothing long-term sublease" deal with TRCFI—"leasing a strip that had no road, clean water, drainage, electricity or communication."

In April 2002, or eight months before the first 25-year lease expired, Sunvar notified Napocor, the government as well as the Philippine Development Alternatives Foundation (PDAF) on exercising its exclusive option to extend the lease for another 25 years.

"Sunvar likewise tendered payment of rentals for the extended period," it said.

After the 1986 EDSA People Power Revolution, TRCFI was dissolved and the rights to the property were given to the PDAF.

Napocor, mandated by the government to privatize all its power assets, informed PDAF of the nonrenewal of the sub-lease. PDAF subsequently informed Sunvar.

Sunvar, however, responded that Napocor and the government must honor the lease agreement contract.

Napocor filed a case against Sunvar through the Office of the Solicitor General headed by Agnes Devanadera at the Metropolitan Trial Court (MTC) in Makati City in 2009.

In 2015, the court ruled in favor of the government and ordered Sunvar to vacate the property.

It also directed Sunvar to pay back rentals amounting to P478.2 million as of May 2015, but with monthly rentals of P3.2 million starting June 2015 until they leave the property.

However, acting on a petition of Sunvar, the Makati City Regional Trial Court Branch 59 issued an injunction against the MTC ruling which the Court of Appeals' Former Fifth Division recently struck down for lack of jurisdiction.

"As of this writing, the government has only publicly stated wanting to eject the occupant that advanced a 16.8 million lease with a contract until December 2027," Sunvar said. — VDS/KVD, GMA News