Page 72 - ISU Echague LUDIP

TABLE OF CONTENTS

LEASE OF LAND FOR AGRO-INDUSTRIAL DEVELOPMENT

Assumptions:

1. Lease area: 85.49 hectares or 854,900 square meters
2. Lease rate per square meter for Agro-Industrial Area: .1% of prevailing market rate (P3,000 x.1% = P30/square meter)

3. Escalation: 10% every 3 years
4. Term: 25 years renewable by another 25 years

5. Grace Period: 5 years or start of operations whichever comes first
6. Deposits: Advance Lease - equivalent to 6 months rent; Security Deposit - equivalent to 6 months rent; and, Performance Security - equivalent to
12 months rent

7. Operating Cost: 60% of Gross Revenues
8. Proposed Leasing Strategy: Lease land on "as-is, where-is" basis and developer or Lessee to develop the area given the huge development cost

9. Development Ratio: 60% buildable area, 40% open space
10. Estimated Development Cost: P3,000/sqm for land development. And P15,000/sqm for factory, warehousing units or P2.5641 billion for land
development and P7.6923 bn for structures

Observations:

1. By doing straight leasing of the 85.4 hectare area for Agro Industrial Development, the Echague Campus Administration is projected to earn

around P3.140 billion in 25 years;
2. Average annual Net Income earnings would be around P125.6 million, which can help augment the development fund for Campus projects; and,
3. Projected employment to be generated from the Agro-Industrial park will be around 10,000 workers, not to mention the added benefits that the

project will bring to the university.

CONTENT:
ISABELA STATE Land Use Development and ISU Projections
UNIVERSITY Infrastructure Plan on lease of land
Main campus
for various land
uses 72