Prime Orion Philippines Inc., a company led by Ayaland Land Inc., may spend P15 billion to redevelop crown jewel Tutuban Center in Divisoria, Manila into a large-scale mixed-use development that will quadruple its leasable space over the next couple of years.
POPI president Jose Emmanuel Jalandoni said in an interview following the annual stockholders’ meeting Friday the company aimed to increase the gross leasable space within the 20-hectare complex to 200,000 square meters from the current 50,000 sqm.
“We are still putting the budget together. But if I was to guess the expansion, it will easily cost P15 billion,” Jalandoni said.
Jalandoni said the company was finalizing the master plan for the Tutuban complex expansion and expected this to be completed over the next six months.
“The full redevelopment of Tutuban Center provides a unique opportunity for POPI to contribute to nation building by promoting urban renewal and revitalization of downtown Manila,” Jalandoni said.
“The center will be redeveloped to a large-scale mixed-use community with the introduction of additional uses, like our own museum, dormitories, schools, hospitals, and office logistics. Our target is to increase the gross leasable area to 200,000 sqm from current 50,000 sqm which will effectively quadruple our business over the next couple of years,” he said.
Tutuban Center is a bargain retail complex that sits on a 20-hectare property where a grand central station will be built to interconnect three railway projects including North Rail to Malolos, Bulacan; South Rail going to Calamba, Laguna; and the Light Rail Transit Line 2 west extension.
Jalandoni said the planned grand central station would deliver 500,000 daily commuters to Tutuban Center.
Ayala Land completed the acquisition of a majority stake in POPI via subscription to the company’s shares worth P5.6 billion in February 2016.
POPI already spent P550 million to renovate the existing Tutuban Center which primarily involved improving and renovating the facilities. Current foot traffic increased to 65,000 a day from 55,000 a day.
POPI also closed down some non-core businesses to streamline operations, including Orion Solutions Inc. which was engaged in the business of providing business software solutions and information technology consultancy services and OE Holdings Inc. which was engaged in providing management and logistical infrastructure service and market incentive systems solutions and other allied businesses and services.
