Cebu-based retailer Metro Retail Stores Group Inc. formed a joint venture with the local government of Samar province for the development of a P472.9 million mixed-use commercial project in Catbalogan City.
MRSGI said in a disclosure to the stock exchange the joint venture partnership included the construction of a department store with one movie theater and leasable spaces, a convention center, a government center with business process outsourcing hub, a transport terminal and a hotel on a 22,000 square-meter lot owned the provincial government of Samar.
The project will be implemented in two phases under a partnership agreement covering 30 years.
MRSGI said a transport terminal and a government center with BPO and convention hub are scheduled for completion within the next six to eight months, while the department store, supermarket, and hotel were slated to be finished in the next 18 to 24 months.
“The joint venture will generate additional revenues to MRSGI and increase the existing gross floor area footprint of its stores,” the company said.
It said both parties agreed to share in the monthly gross revenues and gross rent from the operation of the department store and supermarket movie theater, and leasable spaces.
All revenues to be generated from the operation of the convention center, government center with BPO center and transport terminal will belong to the province.
The possession and ownership of the convention center, government center with BPO center and transport terminal will be turned over to Samar after the completion of the construction phase.
MRSGI will obtain a 20-percent share from the hotel operator’s lease rental payments, while the province will get 80 percent.
MRSGI will turn over to the Samar province the possession and ownership of the department store, supermarket and movie theater with leasable spaces upon expiration of the 30-year implementation period. Jenniffer B. Austria