A major consideration of the agreement is the construction of PAGCOR’s new corporate office building which will soon rise on a two-hectare portion of the property.

The office building, which will span 40,000 square meters, with an additional 15,000 square meters for fit-out space, is valued at Php2.45 billion (Php2 billion for the building construction and Php450 million for fit-out).

“It will be fully financed and built by SMC at no cost to PAGCOR,” said Chairman and CEO Alejandro H. Tengco.

“This project will be more than just a structure,” the PAGCOR chief said. “It reflects PAGCOR’s commitment to creating a world-class work environment for its employees; a reflection of our identity, core values and aspirations.”

Mr. Tengco described the development as a practical and visionary solution to the agency’s need for its own office space.

“For many years, PAGCOR has operated across various rented locations, with our employees spread out and often working under less-than-ideal conditions,” he said.

“While we have always managed to deliver on our mandates, we’ve long dreamed of a day when we could bring everyone together under one roof—a place where we could foster a stronger sense of community, collaboration and shared purpose,” the PAGCOR chief added.

SMC Chairman and CEO Ramon S. Ang, who joined Mr. Tengco in the signing ceremony, assured that construction of the PAGCOR building would commence promptly upon PAGCOR’s formal approval of the design.

“Our goal is to maximize the potential of this property for the public’s benefit. The new PAGCOR headquarters will be a key part of this plan, providing a modern space to support their crucial role in funding government programs that uplift the lives of many Filipinos.”

During the contract signing, the San Miguel chairman also turned over to PAGCOR checks for nearly Php100 million representing advance rentals and security deposits.

In consideration of the office building construction and the rental, the lease agreement allocates 13 hectares of PAGCOR’s 15-hectare Nayong Pilipino property for SMC’s initiatives, which will mostly include infrastructure to complement airport requirements.

“Aside from the rental for the 13-hectare property, PAGCOR also expects additional revenues from renting out unused portions of the new corporate office once it is completed,” Mr. Tengco added.