AYALA-LED infrastructure vehicle Prime Orion Philippines Inc. is now in possession of most of the 20-hectare Tutuban property near the Philippine National Railways (PNR), in line with plans to redevelop Tutuban Center and build a transfer station to a major railway project.
In a disclosure to the Philippine Stock Exchange (PSE) on Monday, Prime Orion said the PNR turned over 3 hectares of the leased property along Tayuman to Tutuban Properties Inc. (TPI) in March. TPI is an indirect subsidiary of Prime Orion.
The PNR has also transferred 5.8 hectares along Dagupan to TPI. The Prime Orion unit paid P115 million in rent to the government-owned railways.
“With the turnover of additional land and air rights, TPI now has control of more than 17 hectares of the 20-hectare PNR property which is vital to the redevelopment of Tutuban Center and its integration with the North South Railway Project of the Department of Transportation and Communications (DOTC) and PNR,” Prime Orion said.
TPI intends to use the properties to redevelop the Tutuban Center mall complex, a part of which will be used as a transfer station to the P117-billion North South Railway Project (NSRP).
Funded by the Japanese government development assistance loan, the NSRP is targeted to kickstart this year.
The NSRP will be developed in two phases. The first phase or North Line is a 37-kilometer elevated commuter rail line extending from Malolos, Bulacan to Tutuban. The second or South Line is a railway stretching 653-kms. from Tutuban to Legazpi City in Albay province.
The Tutuban Center complex will also accommodate the west transfer station of the planned Light Rail Transit Line 2 (LRT 2), which is interconnected to the NSRP.
TPI is wholly-owned by Orion Land Inc., a wholly-owned subsidiary of Prime Orion. Last month, property giant Ayala Land Inc. bought into Prime Orion for P5.62 billion, equivalent to a 51.36-percent majority stake in the infrastructure firm.
In the same disclosure, Prime Orion said it posted P262 million consolidated net loss during fiscal year ending in June. The losses were attributed mainly to a P236 million impairment loss with the decline in value of 1.388 billion shares of Cyber Bay Corp. Prime Orion has 10.46 percent interests in Cyber Bay.