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STATE-OWNED pension fund Government Service Insurance
System (GSIS) has formed a joint venture with San Miguel
Properties Inc. (SMPI) for the development of a
P1.7-billion, high-end hotel project in Legazpi Village,
Makati City.
The
project will be put up on a 1,766-square-meter GSIS
property adjacent to Greenbelt 1. It will be a service
apartment-type hotel with world-class facilities
comparable with that of the Four Seasons Luxury Hotel in
Hong Kong.
The
joint venture is looking at building 500 rooms, with an
average size of 50 sq m per room.
Construction will start shortly and is up for completion
by January 2011.
The GSIS
and SMPI will have a 50-50 percent sharing with regard
to equity and income distribution to be generated by the
hotel.
The
pension fund’s contribution to the JV will initially be
the Makati property, while SMPI will provide the initial
funding for the construction and development of the
hotel. SMPI, whose shares are traded at the stock
exchange, is a subsidiary of food-and- beverage giant
San Miguel Corp.
“We
expect the dividend payments from this hotel to further
bolster our actuarial life,” said GSIS president and
general manager Winston F. Garcia. “It will have
world-class facilities and will cater primarily to
high-end tourists and businessmen.”
Earlier,
the GSIS entered into a lease agreement with mall
developer SM Prime Holdings Inc. involving its 3-hectare
property along Elliptical Road in Quezon City. The lease
agreement is up to 25 years and renewable upon mutual
consent by both parties.
The GSIS
is expected to earn around P1.3 billion from the lease
agreement.
SM Prime
will develop the property, where the GSIS Quezon City
Satellite Office is currently located, into a commercial
complex.
For the
duration of the construction period, the GSIS QC
Satellite Office will still be open for business in the
area. The satellite office will then be housed in the
new SM commercial complex after completion of the
development. |
