Lease agreement at center of dispute between GSIS, Sofitel operator

GSIS building in Pasay city. The government agency issued to
Philippine Plaza Holdings Inc. a notice to vacate 2 lots owned
by the agency alleging that the company wasn’t paying rent.
File/Jonathan Cellona, ABS-CBN News

MANILA—The Government Service Insurance System (GSIS) issued to
Philippine Plaza Holdings Inc., operator of Sofitel Manila, a
notice to vacate 2 lots owned by the agency alleging that the
company wasn’t paying rent.

“Ako po ang nagbigay ng instruksyon sa aming property
administration department na bigyan ng notice to vacate ang
Philippine Plaza Holdings [Inc.] dahil nga po hindi po
nagbabayad po ng upa sa 2 lote namin na kanilang inookupa,”
GSIS general manager and president Jesus Aranas told radio DZMM

“Apat na titulo yan eh: Lot 30A, 30B atsaka lot 19 at lot 41.
Total area ng 19 and 41 is 7,393 square meters. Ngayon po,
meron po kaming kontrata na na-renewal na ‘yan no, nilinaw
talaga ‘yan na hindi talaga kasama sa upa nilang lote ang 19
and 41. Pero they continue to occupy.”

” ‘Yung predecessor ko, October 26, 2017, nag-propose sila na
240 per square meter ang paupa nila dyan or rather, 1,774,320
per month. Tapos may back rentals na 80 million, which needs to
be revisited also.

“Area na ‘yan I think is parang there’s a cistern there and
parking space, kung saan nilalagay ‘yung valet parking nila.
Cistern tank, cooling tower, there’s a tennis court po ‘yan
dati. That is a commercial area.”

In a statement, the company denied the allegations and said the
lots are “covered by a valid and existing contract, the 1991
Amended Contract of Lease, which was renewed in 2016 and is
effective until 2041.”

“Moreover, PPHI has been complying with all its contractual
obligations to GSIS, including the payment of rent. The
controversy concerns only 2 small lots, and not the hotel
itself or the land where it stands,” it said.

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