The Intellectual Property Office of the Philippines said Wednesday it closed a deal with Arthaland Development Corp. over the purchase of two floors spanning 5,999 square meters in Savya Financial Center in Arca South where it will relocate its offices soon.
The attached agency of the Department of Trade and Industry said it would be prudent, on a fiscal level, to have its own space instead of leasing an office.
“With rent escalations of 5 percent per year, it is to the best interest of IPOPHL and the government to invest its retained earnings in real estate which will result in lease savings amounting to P4.7 billion over the next 25 years. These savings may very well be diverted to service upgrades and expansion, helping improve our online services, pursuing our Digital Transformation program, and helping more businesses, innovators and creators in the country protect their IP assets,” said IPOPHL director-general Rowell Barba.
“We signed the contract to sell with the developer on May 24, 2023. The final price is pegged at P1.6 billion. This is a stark contrast to the P4.7 billion we estimate to incur if we lease for 25 years. The final amount also includes a substantial discount of about P225 million,” he said.
Touted as the next BGC, Arca South is poised to be the next large-scale business and lifestyle district in Metro Manila, being the site of a sub-station of the subway train station. It is also convenient for most of IPOPHL’s clients, stakeholders and employees as it is not very far from its current location of the IPOPHL office along McKinley Road.
The acquisition will expand IPOPHL’s current office space of 5,091 square meters by about 908 sq. m. The additional space will also serve IPOPHL’s fast-growing manpower.
“We hope this acquisition will allow us to comply with the issuance of COA to whom we send regular updates to ensure we observe public financial accounting standards,” Barba said.