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MANILA, Philippines – Ayala Land bested 2 other groups vying for the 74-hectare state-owned Food Terminal Inc. (FTI), one of the last remaining large parcels of land in Metro Manila that is ready for immediate development and one of the government’s last available assets for sale.
Below were the bids submitted on Tuesday, August 14:
- Ayala Land – P24.331 billion
- Gokongwei-led Robinsons Land Corp – P14.666 billion
- Andrew Tan-led Empire East – P11.248 billion
Ayala’s bid has a net present value of P23.889 billion and more than double the floor price of P10.2 billion the government has set for the sprawling property.
Ayala will pay P19.465 billion as upfront payment within 60 business days, with the balance to be settled within one year.
“We’re very happy. The upfront cash is something the government can take comfort with,” Privatization Management Office (PMO) chief Karen Singson said after the bid winner was announced.
The award is “subject to post qualification requirements,” which just involves “authentication and validation of documents.”
Notice of bid award to be issued within 15 business days.
Another business district
In a statement, Ayala Land said it will transform FTI, one of the largest property complexes in Metro Manila, into another business district and bring all its product lines — commercial, residential — into the development.
Citing FTI’s proximity to 3 other major toll roads — C5, SLEx (South Luzon Expressway), and the Skyway — Chief Finance Officer Jaime E. Ysmael said, “The property will be the southern gateway into Metro Manila, similar to our Vertis North, our northern gateway development.”
“With these two developments, we are now well-positioned to capitalize on the development opportunities of these two growth centers, supplemented by the government’s planned intermodal transport system. Just as we envision Vertis North to be the first transit-oriented CBD in the north, FTI will serve the same purpose for the south.”
Ayala Land’ portfolio of business districts include Makati, Bonifacio Global City (BGC), Vertis North in Quezon City, and Cebu Park District.
Second win for Ayala
The privatization of a portion of FTI complex is the second government-related deal Ayala Land has won in the past 10 months.
In December 2011, the real estate giant also won the first infrastructure project under the public-private partnership (PPP) scheme of the Aquino government.
The Ayala-led consortium won the Daang Hari toll road concession after Ayala Corp and Spanish partner Getinsa Ingineieria submitted a P902 million financial bid, which is 3-times the floor price of P370 million the government has set for the project.
The project involves the construction of a new 4-kilometer, 4-lane paved toll road that will connect the town of Bacoor in Cavite to the SLEx via Susana Heights Interchange in Muntinlupa. It will provide additional access to the growing traffic between Las Piñas and Muntinlupa and the province of Cavite, which is one of the fastest-growing areas in Metro Manila.
To build up its war chest for its aggressive deal making, Ayala Corp raised P6.4 billion from a share sale in July.
Integrated complex
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.
Only 74 of the complex’s total 103 hectares has been auctioned off. The 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 government also expects economic activities in Taguig City and nearby areas to flourish as employment increases and transport linkages in the complex improves.
Failed bidding
The government tried but failed to bid out the FTI property in the past to raise funds needed to plug its budget deficit.
The Macapagal-Arroyo administration even lowering the floor price to P7 billion to P8 billion. One valuation pegged the value of the entire 103-hectare property at P12 billion.
The last attempt to auction it off was in October 2009, but companies snubbed the bidding.
According to PMO’s Singson, proceeds of the sale will go to the Department of Agrarian Reform (60%) and to the Department of Agriculture (40%). – Rappler.com
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