NEWS

By VG CABUAG

bilyonaryo.com.ph

Listed subway proponent Philippine Infradev Holdings Inc. said lot acquisition for the main station of Makati’s underground train system is now in full swing after the signing of a joint venture agreement between its unit and Richer Today Inc. (RTI).

Station 5, located near Makati City Hall, is the main construction site where tunnel boring machines will be assembled and lowered, the company said.

In its disclosure, Philippine Infradev, a company led by businessman Antonio L. Tiu, said its wholly-owned subsidiary Makati City Subway Inc. formed an unincorporated joint venture with Richer Today for the financing, design, construction, development, marketing and sale of some 5.5 hectares of lots in and around Station 5 of the Makati City Subway Project.

Richer Today is a holding firm primarily engaged in property acquisitions, fund transfers, remittance services, foreign exchange transactions and other allied activities. It is majority owned by real estate and gaming entrepreneur Kevin Kristopher K. Wong and has investments and interests in property development, leasing of office and commercial spaces, food and beverages and other related businesses.

Under the term sheet, Richer Today obligated itself to release at least P775 million within 120 days from signing, with at least P234 million to be released within 10 business days from execution of the agreement.

The firm will also be primarily and exclusively responsible for the marketing and sale of the gross sellable areas of the project, subject to the applicable laws and requirements.

Makati City Subway has already paid P780 million for land acquisition in preparation for the arrival of the tunnel boring machines, which are currently being assembled in China.

“RTI shall commence the actual construction of the project after two years from the execution of the term sheet, unless during the 2-year period, the construction of a specific development in the project site, which shall not have any material adverse engineering effect on the construction and/or existing structures of the subway, is otherwise allowed under the PPP Joint Venture Agreement dated 30 July 2019 for the Makati City Subway Project,” the company’s disclosure read.

The Tiu-led firm will guarantee that the Makati City Subway Project is completed within 7 years from the execution of the term sheet or within such time as provided in the PPP joint venture agreement.

The engineers from China State Engineering—the engineering, procurement and construction contractor engaged by the company—are already in the Philippines to finalize the construction plan for Station 5.

Source: Business Mirror