PAGCOR chairman Alejandro Tengco and San Miguel Chairman Ramon Ang shake hands at the former's Nayong Pilipino contract of lease signing ceremony. Handout.

MANILA -- San Miguel Corporation is building a new office for the Philippine Amusement and Gaming Corporation (PAGCOR) on the gaming regulator's Nayong Pilipino property.

Under the contract of lease signed by San Miguel and PAGCOR, the conglomerate will build a new office building on a two-hectare portion of the 15-hectare Nayong Pilipino lot in Pasay City.

The office will span 40,000 square meters with an additional 15,000 square meters for fit-out space, and is valued at P2.45 billion.

The remaining 13 hectares, meanwhile, will be used by San Miguel for infrastructure to complement airport operations. The firm now leads a consortium that operates the country's main gateway, the Ninoy Aquino International Airport.

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In a statement, PAGCOR chairman Alejandro Tengco said the deal is a practical 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 noted.

 “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,” he said.

Tengco said that aside from San Miguel's rental of the 13-hectare property, PAGCOR also expects to receive additional revenues from renting out unused portions of the new corporate office once it is completed.

San Miguel Chairman Ramon Ang, meanwhile, turned over checks for almost P100 million representing advance rentals and security deposits.

Ang also said that they will begin construction of the office building as soon as PAGCOR approves of its design.