Biz Buzz: Ironing out Camp John Hay kinks

The long-drawn-out legal battle between the Bases Conversion Development Authority (BCDA) and businessman Robert Sobrepena’s CJH Development Corp. (CJH DevCo) over a 247-hectare portion of Camp John Hay may finally be nearing its conclusion.

But what will happen to the sub-lessees who have nothing to do with their dispute? Most of them have signed up lease contracts with CJH DevCo that are valid up to 2046.

“We’ve already approached them and some have agreed to sign direct contracts of lease with us, so it’s not a problem,” BCDA president Joshua Bingcang told Biz Buzz.

“We expect some to sign this fourth quarter and we expect the high court to act on the MR (motion for reconsideration) soon.”

The Supreme Court upheld earlier this year the arbitral ruling that had directed CJH DevCo to vacate the Baguio leisure estate.

However, BCDA was ordered to compensate CJH DevCo amounting to P1.4 billion for various improvements made, including the golf course, hotel and other developments. But BCDA can’t take any action yet until the final MR is resolved.

Sub-lessees at the estate include around 180 house owners.

BCDA is likewise drawing up a transition period for operators of other operating assets, like The Manor Hotel, that would eventually be returned to the government-owned corporation, Bingcang said.

Even without any additional investment to open up new areas, BCDA expects to earn about P2 billion in annual lease payments from existing developments at the popular Camp John Hay.

Once the BCDA is finally able to recover the property, Bingcang said they could unlock more values from the former military camp, with 50 to 70 new areas available for development — and which have already attracted a number of potential investors.

Meanwhile, for those who miss the vibrant retail area at the foot of The Manor hill that used to host hard discount/surplus shops, BCDA plans to bid out leasehold rights at the commissary by the first quarter of the coming year.