The contract of the Ayala Land Inc. with the University of the Philippines for the Technohub complex in Diliman has created thousands of jobs, an official statement said Wednesday.
According to ALI, the ALI-UP partnership has created 50,000 jobs since its operation started in 2008.
This developed as the company clarified that under their development lease agreement with UP for the Technohub property, the premier state university will receive P171 per square meter monthly.
This is higher than the P22 per square meter monthly within a year which appeared in an online report read by Presidential Spokesperson and chief legal counsel Salvador Panelo.
“This was derived from P4.23 billion in lease payments and P6 billion investment in 16 commercial buildings for a total amount of P10.23 billion over the life of the 25-year contract,” said ALI.
Of the total lease payments, P1.1 billion was estimated to have earned from 2008 until 2018 while P3.13 bilion will be earned from 2019 until 2033.
According to the company, of the 37-hectare property, Technohub occupies 20 hectares, four hectares remains with UP while 13 hectares are open space, the statement said.
Aside from this, ALI said if the contract is completed in 2033, 100 percent of the lease for the building will go to UP being owner of the lot.
“After 2033, UP as owner, will receive 100 percent of the buildings’ rent. UP also continues to own the land which has appreciated in value since the start of the partnership,” said the company.
“We believe this development has been fruitful and beneficial for UP, ALI and the community. We welcome a transparent review and assessment of our partnership with UP,” said ALI.
Ayala learned the firm received a lease contract from UP in 2006 after the firm responded to the big invitation and negotiated a proposal called by UP where they won over nine other real estate developers.
“Only ALI submitted a proposal and committed to meet the very specific parameters set out by UP—a campus-type development with a minimum of 10, three to four-story buildings catering to IT companies,” ALI explained.