Property developer Ayala Land Inc. said Tuesday it is open to a “transparent review and assessment” of the development lease arrangement with University of the Philippines amid plans of the Duterte administration to probe the transaction.
Presidential Spokesperson Salvador Panelo said Sunday he would look into Ayala Land’s contract with the state-run university after reading an internet story that the developer was paying UP only P20 per square meter for a period of 25 years.
Ayala Land, in a statement, clarified that UP would receive P171 per sq. m. per month during the duration of the lease development contract.
“This was derived from P4.23 billion in lease payments and a P6-billion investment for 16 commercial buildings, for a total amount of P10.23 billion, over the life of the 25-year contract,” the property firm said.
It said that after 2033, UP as the lot owner, would receive 100 percent of the buildings’ rent. UP also continues to own the land which appreciated in value since the start of the partnership,” it said.
Ayala Land signed a lease agreement with UP in 2006 for the development of the UP-Ayala Land Technohub. This was after two failed bids and an invitation for a negotiated proposal to nine real estate developers.
Ayala Land was the only company that submitted a proposal and committed to meet the very specific parameters set out by a campus-type development with a minimum of 10, three to four-story buildings catering to IT companies.
Ayala Land said the ALI-UP partnership created 50,000 jobs since the start of operations in 2008.
Ayala Land also clarified that only 20 of the 37-hectare property is developable, given that four hectares remain with UP and 13 hectares are allocated for open space.
The share price of Ayala Land went down by 2.5 percent Tuesday to close at P39.50.
The Duterte administration earlier said it would review all deals signed with the private sector that could put taxpayers’ money at a disadvantage.
The government is also reviewing the water concession contracts with Maynilad Water Services Inc. and Manila Water Co.