By Ma. Elisa P. Osorio (The Philippine Star) Updated August 01, 2011 12:00 AM
MANILA, Philippines - The state run National Development Corp. (NDC) will buy tire maker Goodyear Philippines’ share in the 18-hectare prime property in Las Piñas for P872 million.
“We are exercising our option to purchase the Goodyear property,” Trade Secretary Gregory L. Domingo said in an interview with reporters.
According to Domingo, NDC had the right of first refusal. The right of first refusal means that Goodyear must first offer the property to NDC before entertaining other buyers. NDC owns 60 percent of the property and the P872 million is for the remaining 40 percent.
Domingo said they were able to get a good price for the property because he said it is below the appraisal value. Goodyear originally wanted P14,000 per square meters. Domingo said NDC made a counteroffer of P10,000 per square meter. The agreed selling price was at P12,000 per square meters.
Domingo said NDC will be sourcing part of the money from government financial institutions (GFIs).
As of now there is no concrete plan for the property but said it is a nice property. Domingo said there is no more available lot in that area that is that big. “I’m sure if we open it up a lot of companies will be interested.”
The better strategy is to not sell because it is a prime piece of property. We will hold the land then enter into a long term lease,” he said.
Domingo said they are more partial to a long term lease arrangement than a joint venture. The Goodyear property already has its own mini-power plant and is ideally located behind Ayala Alabang and the SM mall. It would be ideal for a mixed commercial and residential development.
In 2009, Goodyear closed its manufacturing plant here. Its manufacturing plants in Malaysia, Indonesia and Thailand are now supplying the local demand for tires.