LISTED Gaisano-led Metro Retail Stores Group Inc. (MRSGI) said it signed Monday, February 18, a joint venture agreement with the Province of Samar for the development of a mixed-use complex in Catbalogan City, Samar.
The project, which will rise on a 2.2-hectare property owned by the provincial government in Barangay 07, Poblacion in Catbalogan City, is estimated to cost P472.904 million.
It will consist of a department store and supermarket with one movie theater and leasable spaces, a convention center, a government center with a business process outsourcing (BPO) center, a hotel and a transport terminal.
In a disclosure to the Philippine Stock Exchange Monday, the Cebu-based retailer said the joint venture agreement covers a period of 30 years from the start of the commercial operations of the department store and supermarket.
The provincial government and MRSGI will share the monthly gross revenues and gross rent, without value-added tax (VAT), from the retail operations.
Rental revenues from the hotel operator will be shared 80-20 in favor of the provincial government.
All the other facilities will be turned over and all revenues will go to the provincial government.
"All revenues to be derived from the operation of the convention center, government center with BPO Center, and terminal will belong to the province. The possession and ownership of the convention center, government center with BPO center, and terminal will be turned over to the Province after completion of construction," MRSGI said.
The company will also turn over the department store and supermarket to the provincial government after 30 years.
The project will be undertaken in two phases, with the transport terminal as the first component to be completed. Construction will take only six months after the property is turned over to MRSGI.
The convention center and government center are both targeted to be finished in eight months.
Sourcing period for the hotel will be completed in 12 to 18 months.
The department store and supermarket, which will be expandable to a community mall, are targeted to be completed between 18 and 24 months. (MVI/SunStar Philippines)