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MANILA, Philippines – Seven of the country’s biggest property players will likely join the race to own one of the largest industrial complexes in Metro Manila.
The state-owned Food Terminal Inc. (FTI), which is on the privatization block again, will be up for public bidding on August 8 with a floor price of P10.2 billion, the Department of Finance said in a statement.
The following groups bought bid documents, signifying their intention to participate in the bidding:
- Gokongwei-led Robinsons Land Corp.
- Andrew Tan-led Empire East Land
- Ayala group’s Ayala Land Inc.
- Lopez-led Rockwell Land Corp.
- Sy-led SM Land Inc.
- Andrew Gotianun-led Filinvest Land Inc.
- Jose Antonio-led Century Properties Group Inc.
Finance Secretary Cesar Purisima said the P10.2 billion floor price, though lower than the P12-billion valuation, is based on the current market price.
“There is no plan to drop the valuation. We believe in markets,” Purisima said.
The sale of the FTI property has been long planned to help plug the government’s deficit, but these were never executed. Price has been a stumbling bloc with the government wanting to sell it for more but buyers sought it for less.
The last attempt to auction FTI was in October 2009 when private companies snubbed the public bidding. Under the Arroyo administration, the floor price ranged from P7 billion to P12 billion.
But with property prices booming again and demand picking up, private sector’s interest is back.
This time, of the FTI Complex’s 103-hectare area, only 74 hectares will be put on the auction block, according to the Privatization Management Office (PMO).
The complex’s remaining 29 hectares will be allocated for other purposes including a 5-hectare integrated bus terminal, which the Department of Transportation and Communication (DOTC) and the Department of Public Works and Highways (DPWH) are overseeing.
“[The] PMO continues to coordinate with other government agencies to ensure that the privatization of FTI complements the broad array of infrastructure building and agriculture initiatives of the government,” said PMO chief Karen Singson.
Currently, the FTI agro-industrial complex is home to over 300 lessor-companies, most of them have industrial buildings with standard-sized stalls for office, warehouse or small-scale processing operations.
With the sale, the government expects economic activities in Taguig City and nearby areas to flourish as employment increases and transport linkages in the complex improves. – Rappler.com
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