Sunvar leaving Mile Long property in Makati

MOVING OUT Carton boxes filled with office supplies line the corridors of a building in Mile Long after tenants received a notice to vacate the property issued by the Makati Regional Trial Court. —MARLON RAMOS

Piles of large carton boxes and plastic bags filled with office supplies lined the corridors of Sunvar Realty Development Corp. building in Makati City as the company and its tenants prepared to move out of the prime property in deference to an order from the Court of Appeals.

The Office of the Solicitor General (OSG) served on Tuesday the notice to vacate issued by Presiding Judge Maryann Mañalac of Makati Regional Trial Court Branch 141.

Mañalac signed the order in compliance with the appellate court’s Aug. 14 resolution, which upheld the June 10, 2015, order of Makati Metropolitan Trial Court (MeTC) Branch 61 that directed Sunvar to leave the 2.9-hectare lot on De la Rosa Street.

Notice to vacate

The MeTC also ordered Sunvar to pay the government P478,200,600 in back rentals as of May 2015 and P3,209,400 in monthly rental starting June 2015 until it vacated the premises.

Solicitor General Jose Calida accompanied court sheriff Robert Bautista in serving the notice to vacate on Tuesday.

Lawyer Alma Mallonga, Sunvar’s legal representative, said the property developer would comply with the appellate court’s resolution.

“Sunvar continues to have faith in the law and legal process,” she said in a statement. “In accordance with that commitment, Sunvar will comply and vacate Mile Long,” she added.

Calida, in a statement, said Sunvar and all its tenants should “surrender the possession of the Mile Long property” after the appeals court ruled in favor of the government.

Mallonga’s statement read:  “Some 35 years ago, Sunvar leased undeveloped land of the government upon the understanding, reflected in contracts annotated in the title of the land, that the lease period would expire in 2027.

“Sunvar paid P16.8 million as advance rentals, and expended millions more to build roads, buildings and infrastructure to develop the property which is why it is so valuable now.

“Relying on the same contract and understanding, small business owners and taxpayers purchased condominium units in Mile Long that are now the source of their livelihood.

“Some 35 years ago, at a time of political and economic uncertainty, Sunvar entered into a legitimate commercial transaction. It has pursued legal remedies to resist ejectment firmly believing there is a binding contractual commitment on the part of the government to honor a lease that is set to expire only in 2027.”

Mile Long lot is owned by National Power Corp. (Napocor) and the government, which leased it to Technology Resource Center Foundation (TRCF) in 1978 until 2002, renewable for another 25 years.

Sublease agreement

TRCF then subleased the property to Sunvar.

But in 2002, Napocor notified TRCF’s successor, the Philippine Development Alternatives Foundation (PDAF), that it was not renewing the lease contract as it would sell the property.

Sunvar did not vacate the property, informing Napocor and the government that it was exercising its exclusive option to extend the lease with PDAF for another 25 years.