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Sunvar Case: The Actual Facts

The Actual Facts of Sunvar Case: Sunvar Realty Development Corporation, which will be referred to as simply Sunvar on this document, is facing a government bid to eject due to allegations of illegal occupancy.

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Sunvar Case: The Actual Facts

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  1. Sunvar​​​​Case:​​​​The​​​​Actual​​​​FactsSunvar​​​​Case:​​​​The​​​​Actual​​​​Facts Sunvar​​Realty​​Development​​Corporation,​​which​​will​​be​​referred​​to​​as​​simply​​Sunvar​​on​​this document,​​is​​facing​​a​​government​​bid​​to​​eject​​due​​to​​allegations​​of​​illegal​​occupancy.​​Sunvar is​​located​​within​​a​​2.9-hectare​​property​​found​​between​​De​​la​​Rosa​​and​​Arnaiz​​Streets​​in Legazpi​​Village,​​Makati​​City. The​​government​​publicly​​stated​​its​​desire​​to​​eject​​Sunvar​​although​​it​​already​​paid​​in​​advance a​​P16.8-million​​lease​​with​​Technology​​Resource​​Center​​Foundation​​Inc.​​(TRCFI),​​with functions​​assumed​​by​​the​​Philippine​​Development​​Alternatives​​Foundation​​(PDAF).​​The contract​​is​​until​​December​​2027. As​​a​​revert​​to​​the​​said​​allegations,​​Sunvar​​wishes​​to​​make​​some​​clarifications​​regarding​​the matter. Leasing​​an​​extended​​area In​​December​​1977,​​the​​government​​and​​National​​Power​​Corporation​​(NAPOCOR)​​decided​​to lease​​125,607​​square​​meters​​of​​undeveloped​​property​​to​​TRCFI.​​The​​said​​property​​spans from​​Bangkal​​to​​Dasmarinas​​Village,​​Makati​​City. Sunvar​​made​​TRCFI​​aware​​of​​its​​interest​​in​​sub-leasing​​3,000​​square​​meters​​of​​this​​property. At​​that​​time,​​it​​needed​​a​​parking​​area​​for​​its​​Makati​​Squares​​shoppers,​​moviegoers​​and​​other frequenters.​​TRCFI​​insisted​​Sunvar​​to​​rent​​the​​entire​​22,924​​square​​meters​​instead. The​​expanded​​hectarage​​had​​a​​narrow​​opening​​that​​can​​only​​be​​accessed​​from​​Arnaiz​​Street. Amorsolo​​creek​​also​​blocked​​the​​front.​​A​​portion​​of​​the​​area​​was​​occupied​​by​​informal settlers,​​particularly​​across​​Makati​​Medical​​Center.​​Not​​to​​mention,​​the​​strip​​to​​be​​leased​​had no​​basic​​utility​​services​​such​​as​​electricity,​​water​​and​​communication.​​There​​was​​no​​paved roads​​and​​drainage​​either. Because​​of​​its​​strategic​​need​​for​​the​​Amorsolo​​access,​​however,​​Sunvar​​agreed​​to​​the all-or-nothing​​sub-lease​​in​​August​​1980. Developing​​the​​leased​​area Sunvar​​introduced​​developments​​where​​possible​​despite​​the​​fact​​that​​only​​50%​​of​​the​​leased area​​is​​usable​​for​​constructions.​​It​​also​​subleased​​to​​other​​developers​​under​​the​​same​​rights provided​​by​​the​​lease​​agreement​​with​​TRCFI. That​​being​​said,​​today,​​erected​​on​​this​​once​​barren​​land​​are​​structures​​including​​The​​Gallery, Mile​​Long​​Theme​​Center​​and​​Premiere​​THX​​Cinema,​​among​​others. Paying​​the​​50-year​​contract​​in​​full TRCFI's​​long-term​​sub-lease​​agreement​​with​​Sunvar​​should​​cover​​a​​50-year​​period​​wherein the​​initial​​period​​was​​set​​at​​25​​years.​​Sunvar​​may​​exclusively​​renew​​the​​rental​​period​​for another​​25​​years.​​To​​settle​​the​​lease,​​Sunvar​​paid​​TRCFI​​the​​full​​advance​​payment​​for​​the rent​​amounting​​to​​P16.8​​million.​​The​​amount​​covered​​the​​entire​​contract​​period. Under​​the​​sublease​​agreement,​​Sunvar​​needs​​to​​notify​​the​​lessor​​in​​writing​​its​​decision​​to

  2. exercise​​its​​option​​to​​renew​​the​​sublease​​not​​less​​than​​six​​months​​before​​the​​end​​of​​2002.​​In April​​2008,​​Sunvar​​notified​​the​​government,​​NAPOCOR​​and​​TRCFI.​​Nonetheless,​​TRCFI​​had already​​been​​dissolved,​​but​​the​​PDAF​​assumed​​its​​functions. Sunvar​​tendered​​rental​​payments​​for​​the​​renewed​​period. Respecting​​the​​sanctity​​of​​PPP In​​brief,​​the​​government​​mandated​​NAPOCOR​​to​​privatize​​all​​its​​assets​​hence​​the​​latter informed​​PDAF​​of​​the​​sublease's​​non-renewal.​​A​​sub-lease​​that​​is​​essentially​​a​​private-public partnership​​(PPP),​​Sunvar​​wanted​​that​​the​​government​​and​​NAPOCOR​​ought​​to​​honor​​the terms​​and​​agreements​​stipulated​​in​​the​​contract.

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