Metro Ayala lease goes until ‘43
Fire-torn Metro Department Store and Supermarket is legally authorized to operate at the Ayala Center Cebu until 2043, an official said.
In a text message to SunStar Cebu, lawyer Vincent Tomaneng, corporate secretary and chief legal counsel of the Metro Retail Store Group Inc. (MRSGI), said the original lease term between Metro and Cebu Holdings Inc. (CHI) was supposed to expire on April 22, 2028.
MRSGI, though, secured a 15-year extension from CHI. Tomaneng said the extension was approved by CHI before the end of 2017.
“We were able to get a 15year extension until 2043. CHI approved the extension last month,” he said.
Tomaneng’s pronouncement was in response to speculations posted on social networking sites that the lease contract expired recently.
He had since denied the rumors, including one which alleged that a full renovation of the department store is a requirement for the renewal of the lease contract.
Speculations that the Gaisanos intentionally set the building on fire also don’t make sense, he added.
The validity of the lease contract for the next 25 years was also confirmed by Atty. Jeanette Japzon, CHI corporate communications manager.
Japzon told SunStar Cebu that the lease contract between CHI and MRSGI is still in effect. CHI operates Ayala Center Cebu.
The affected building belongs to MRSGI and stands on a property that it is leasing from CHI.
Due to the recent fire, Metro Retail Stores Group, Inc. (MRSGI) announced the temporary closure of the Metro Department Store and Supermarket located in Ayala Center Cebu, according to a disclosure it sent to the Philippine Stock Exchange.
MRSGI has yet to fully assess the damage incurred and the impact on its financials. MRSGI maintains adequate insurance cover and expects to eventually recover the losses in due course.
“Backed by a strong balance sheet and adequate capital, MRSGI has initiated the process of recovery and rebuilding. Moreover, the incident will not hamper operations of MRSGI’s other 50 stores nationwide, as well as its existing relationships with suppliers and key stakeholders. MRSGI also remains committed to its expansion program in 2018 and beyond.”
Meanwhile, Ayala Center Cebu will remain closed to the public until further notice after the Bureau of Fire Protection (BFP) declared the fire out at 4:18 p.m. yesterday.
Japzon said they will reopen as soon as they can complete the clean-up and checking of their systems. /