THE Metro Retail Stores Group Inc. (MRSGI) and the Province of Samar signed on Monday, Feb. 18, a joint venture agreement to develop, construct and operate a commercial complex in Catbalogan City.
In a disclosure to the Philippine Stock Exchange, the company said the complex will comprise a department store and supermarket, a movie theater, leasable spaces, convention center, government center with business process management (BPM) center, transport terminal and hotel.
The project will be developed on a 22,000 square meter property in Poblacion, Catbalogan City.
MRSGI targets to complete the construction of the department store, supermarket, movie theater and leasable spaces within 18 to 24 months from the turnover of the property, while the convention center, government center and BPM center is targeted to be completed within eight months from the turnover. The company plans to complete the transport terminal in six months while the hotel is slated for completion in 12 to 18 months. Implementation of the project will be for 30 years, which begins when the department store and supermarket start commercial operations. The project cost is estimated at P472 million.
“The parties have agreed to share in the monthly gross revenues and gross rent, without value-added tax, from the operation of the department store and supermarket with one movie theater and with leasable spaces,” the disclosure stated.
All revenues from the convention center, government center with BPM center and terminal belong to the Province. MRSGI will get a 20 percent share from the hotel operator’s lease rental payments while the Province will get 80 percent. After 30 years, MRSGI will turn over to the Province ownership of the department store, supermarket, theater and leasable spaces. (MEA)