GSIS gears up for biggest asset sale: Port Area property to be sold for P20B
The Government Service Insurance System aims to raise at least P20 billion from the sale of a prime property in Port Area in Manila in what it expects will be its its largest property transaction.
The sale involves two lots with land areas of 672,645 square meters and 109,212 sqm near the vicinity of Pier 2 Manila North Harbor and Negros Navigation Ferry Terminal in Tondo, Manila.
GSIS president and general manager Jesus Clint Aranas said they expect to fetch a good price for the property which is located in the booming Manila Bay Area, where land values have appreciated by 10 to 15 percent in the past five years.
?The Port of Manila Bay serves as the largest and the premier international shipping gateway to the country which spells economic growth,? Aranas said.
?We find it timely to liquidate the Port Area property and take advantage of the attractive real estate market values in the Manila Bay area. In fact, we are eyeing a considerable gain on the sale of this asset.This will go to the pool of assets that can be invested,? he added.
Aranas said GSIS has yielded substantial gains from the sale of big-ticket assets in the past few years, noting that the pension fund?s assets reached P1.09 trillion as of November 2016.
Although it tops our big-ticket assets, we are selling the Port Area property as it does not contribute to our operations except for valuation gains, he added.
However, there may be title issues as the Philippine Ports Authority has claimed ownership over a part of the land. Apart from this, a big portion of the land is occupied by squatters.