By Zinnia B.
Dela Peña and Iris C. Gonzales (The Philippine Star) | Updated July 2, 2013 -
MANILA,
Philippines - Amid mounting fears of overheating and asset bubbles, the
state-run Social Security System (SSS) is recalibrating its strategy aimed at
unlocking the full potential value of its real estate assets, starting with the
sale of a prime property in the burgeoning central business district, Bonifacio
Global City, for at least P2.24 billion.
In a briefing
yesterday, SSS president and chief executive officer Emilio S. De Quiros Jr.
said now is the “most opportune time” to unload one of its big-ticket
properties when land prices are still moving strongly up.
“A robust
Philippine economy has increased land values, providing a reason to sell at a
higher premium. Land values are currently on the high side but nobody can
predict where the market is headed. We feel at this point that now is the right
time to sell our property considering what happened in the stock market in the
previous week. Stock prices have gone up and down. There is no way you can sell at the peak,” De
Quiros said.
Up for sale
is a portion of its land holdings in BGC with an area of 8,300 square meters
for at least P269,894 per sqm or a total P2.24 billion. The property was
acquired through a dacion en pago agreement with Bonifacio Land Corp. as the
latter’s payment for its P1.5 billion debt.
The property,
commonly known as Block 56, is located along Mckinley Parkway between 10th and
11th Avenues and near commercial areas such as Market! Market!, Bonifacio High
Street, and the newly-opened SM Aura.
De Quiros
said the property is expected to attract both domestic and foreign investors
eager to capitalize on BGC’s robust commercial growth.
SSS chairman
Juan Santos, for his part, said the state pension fund evaluated several
options, including a lease and a joint venture, but the board determined that
selling the property was the best course of action as the agency is not into
real estate development.
“Given
certain market assumptions, we opted for an outright sale since we are not
experts in the property sector,” Santos said.
The pre-bid
conference will be held on July 22 while submission of bids is scheduled on
Sept. 4. The winning bid will be announced on Oct. 2.
“As the
country positions itself to become Asia’s newest tiger economy, we at SSS want
to unlock the value of our real estate properties to maximize earnings, spur
economic growth, make higher yielding investments and help create new jobs,” De
Quiros said.
De Quiros
said SSS has P20 billion worth of real estate assets which include a
four-hectare property located on East Avenue along EDSA, prime pieces of land
in BGC, and a big lot near the Senate area.
Proceeds from
the sale of the BGC lot will be used to further shore up its investment reserve
fund.
De Quiros
said the agency, which has trimmed its stock market exposure in the past six
months, is considering aggressively investing in the stock market to take
advantage of the current prices. “To generate income, we need to trade
equities,” he said.
He said the
fund is also looking at tapping the bond market next year. Aside from this, it is also considering
investing in overseas markets especially with the US economy showing signs of
recovery.
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