SUMMARY
This is AI generated summarization, which may have errors. For context, always refer to the full article.
MANILA, Philippines – State-run pension fund for private sector employees Social Security System (SSS) is putting a real estate property in aggressively growing business district Bonifacio Global City (BGC) on the auction block.
In a press conference on Monday morning, July 1, SSS president and CEO Emilio S. de Quiros Jr announced that the decision to sell a block of real estate in the former military base in Taguig City comes at a time when the land values are moving up.
“A robust Philippine economy has increased land values, providing a reason to sell at a higher premium. It is in BGC where values in real estate assets have been moving up significantly,” he said.
“We are going to sell a block in BGC with a total area [of] 8,300 square meter of prime land,” he added.
The property is currently called Block 56 and composed of 4 lots located in 10th Avenue, 11th Avenue and 25th Street and McKinley Parkway.
Minimum bid is set at P2.24 billion, equivalent to a selling price of P269,894 per sqm. SSS is asking for a deposit of at least 10% of the bid price.
De Quiros said the timetable is as follows:
- publication on July 3, 10 and 17
- pre bid conference July 22
- submission of the eligibility documents August 15 2 pm
- submission of cash bids September 4, 2013
- announcement of the winning bidder and issuance of notice of award Septemebr 26 to October 2, 2013
Good time to sell
“It is a good time to unload a real estate asset,” De Quiros explained.
He stressed that the pension fund has decided to unlock values of the real property asset in its portfolio to:
- maximize earnings
- spur economic growth
- make higher yielding investments
- promote new business
- create new jobs
When asked why SSS decided to dispose the property instead of entering into other deals, SSS chairman Juan B. Santos stressed that property development is not the pension fund’s core business.
“We studied the option, including a lease and JV (joint venture), given certain market assumptions. We’ve decided that selling is the best option since we are not experts in the property sector,” Santos said.
He added that there were no buyers who have expressed interest to acquire the property in BGC at Fort Bonifacio yet.
“This is the first time we’re announcing it. In the specific lot being bid, there was not a specific party that approached us yet,” the chairman said.
Profitable
De Quiros said the pension fund has grown its assets through prudent investment strategy, taking advantage of the Philippine stock market’s rallies.
“At SSS, we’re breaking new grounds in terms of financial growth and success…Our long term investments in various industries — mining, banking and finance, etcetera — have given returns.”
De Quiros highlighted that SSS’s net income in 2012 jumped 42% on the back of increases in contributions and investment income. Revenues increased to P36.2 billion in 2012 from P25.55 billion in 2011.
Net revenues in January to April 2013 grew 17.7% to P16.44 billion.
The pension fund aims to hit full-year net revenues of P30 billion in 2013. – with reports from Lean Santos/Rappler.com
Add a comment
How does this make you feel?
There are no comments yet. Add your comment to start the conversation.