Property firms vie for P13B FTI complex

Ayala Land, Robinsons among prospective bidders

By Ronnel Domingo
Philippine Daily Inquirer
Posted date: October 05, 2009

MANILA, Philippines - Real estate giants Ayala Land Inc. and Gokongwei (Robinsons) groups are vying for a P13-billion chunk of the Food Terminal Inc. (FTI) complex in Taguig City, which the government is auctioning this week.

Finance Undersecretary Crisanta S. Legaspi said the two groups were among the “big-ticket players” expected to submit bids on Oct. 8.

Legaspi said four companies, including the two big developers, have secured bidding documents.

She did not name the other two, but added that Century Properties has also expressed interest in the FTI land although the company was not among the four that were expected to bid.

“There will be no prequalification for the bidding since only the bid prices would be the basis of the choice for the winning bidder,” Legaspi explained.

“The transaction would be in cash payment and is expected to be completed within the year,” she said, indicating that the government intends to collect the proceeds before the year closes.

The sale of the FTI property is part of the government’s 2009 privatization program aimed at funding a budget deficit, which as of the latest plan would hit P250 billion. However, a spate of natural calamities, including that wrought by tropical storm “Ondoy,” is expected to further bloat the deficit by another P10 billion.

The FTI plan involves the sale of 103 hectares of the 120-hectare complex, valued at about P13,000 a square meter.

Of the 103 hectares, an area covering 24 hectares has been declared a special economic zone and is subject of long-term contracts between the Philippine Economic Zone Authority and locator firms, which Legaspi said would be honored even after privatization.

About 80 hectares of the FTI complex are free for development, while the 17-hectare parcel not covered by privatization is owned by the National Food Authority.

The sale of the FTI property will account for close to half of the government’s target revenue of P30 billion from privatization this year.

The sale of the government’s 40-percent stake in PNOC Exploration Corp. accounted for another big chunk of expected privation proceeds in 2009, which financial officials so far place at P11 billion.

Another item scheduled for auction is the lease of the Philippines’ property in the Fujimi district of Tokyo, which the country acquired as part of Japan’s reparations to the Philippines for damage inflicted during World War II.

The DOF plans to auction a 50-year lease of the 4,361.85-square meter property, which is expected to raise P3 billion.