Tutuban lease contract renewed
Posted on December 25th, 2009
The Tutuban area is located right beside the heart of Manila’s principal trading district which is Divisoria. It is a strategic center for business and commerce because of its proximity to important districts and landmarks such as Divisoria market, Ongpin, Binondo, Escolta, North and South Harbors and Quiapo, among others.
That’s why Tutuban Properties, an indirect wholly-owned subsidiary of Prime Onion Philippines leased the Philippine National Railway (PNR) property covering an area of 200,000 square meters to build what is now know as the Tutuban Mall. The mall successfully introduced a modern and commercial and business environment to the country’s wholesale and retail center. It took the lead in introducing elements of modern facilities and management organization. The mall served as a frontrunner in the upgrade and redevelopment of Divisoria. Tutuban Mall pioneered the operation and management of “cluster stores” in the area.
Recently, Tutuban Properties renewed its lease contract on the said PNR property in Manila for another 25 years starting September 5, 2014. The lease contract was signed at the amount of P3.9 billion, with a percentage rental of two percent of gross sales/rental income and 15 percent of rental income on sublease, as well as a one-time fee of P750 per square meter for additional improvements on the leased premises.
Tutuban Properties was formed under Guoco Land to primarily oversee the development and growth of the 22-hectare PNR property. Guoco Holdings Phils., on the other hand, was created by the merger between Philippine Orion Properties Inc. and First Lepanto Corp. in 1989, Guoco Land was formed as its subsidiary primarily to handle property investments, such as the one in Tutuban.
