GOVERNMENT Service Insurance System (GSIS) and Philippine Plaza Holdings, Inc. (PPHI) have amended their lease contract to include complementary lots to the leased hotel land site where the firm does business as Sofitel Philippine Plaza Manila, the state pension fund said on Wednesday.
“Sofitel hotel’s success is intrinsically linked to GSIS, as its income will be drawn from the hotel’s revenue. By safeguarding GSIS’s assets and generating income from these, we can assure our members and pensioners that their benefits will be provided when due,” GSIS President and General Manager Jose Arnulfo A. Veloso said in a media release.
Their existing contract of lease was forged on June 26, 2016 and will be valid until June 26, 2041 to ensure the hotel’s operations on the prime land in the Pasay City area. It was originally signed in 1991.
The amended contract has been expanded to cover the building’s site and Lots 19 and 41, GSIS said, adding that the move “reflects the commitment of both parties to the hotel’s continuous growth and the flourishing local tourism sector.”
Under the new agreement, all permanent improvements introduced by PPHI on the building land site and complementary lots will be transferred to GSIS at the end of the lease period or in the case of early cancellation.
In accordance with the arbitration rules of the Philippine Dispute Resolution Center, Inc., the contract now includes a dispute resolution clause that outlines “a path towards resolution through negotiation, mediation, or arbitration.”
All alterations or improvements to the premises now also require prior written consent from GSIS, as both parties agreed to treat the entire area as one indivisible unit.
GSIS said Mr. Veloso and PPHI President Esteban G. Peña Sy have committed to upholding the terms and conditions of the contract to ensure the luxury hotel’s continued success. — Aaron Michael C. Sy