Napocor eyes partner to develop P10-B real properties

State-owned National Power Corp. (Napocor) is looking at the possibility of tapping a real estate developer as partner in developing part of its estimated P10-billion worth of real property assets.

Napocor sources said a special committee is being proposed to be formed for this purpose. "The committee will be set up to review and study the prospects of the state holdings of Napocor," the sources said.

According to sources, the committee will focus on those properties which can be disposed of immediately.

"They (committee) will try to pinpoint what properties to be sold. They could also look into the possibility of developing some of these properties and getting a developer as a partner," the sources said.

In an earlier interview, Napocor president Jesus N. Alcordo said they intend to dispose of some performing assets amounting to P22 billion, including the P10-billion real estate assets to be able to trim down the company’s losses. The P10 billion includes expected proceeds from the sale of some of the company’s aircraft and barges.

Napocor suffered a net loss of P4 billion in the first quarter this year on top of the P12.9 billion which the company lost in 2000.

The sale of the assets, Alcordo said, is part of their effort to look for ways to not only bring down their losses but also to partly finance their maturing obligations.

Specifically, he said they are planning to dispose of a 12-hectare property in Makati, including the site of the Mile Long Arcade and a portion of the Ecology Village. Napocor’s real estate assets in various points of Metro Manila add up to about 25 hectares.

Apart from these properties, Napocor owns real estate near the Makati Central Post Office; Sucat, Parañaque; Quezon City and Intramuros which used to house the first Napocor building. There are also some properties in Visayas and Mindanao which are expected to be sold.

The power firm is also planning to sell its eight-seater King Air which was purchased at $5 million. It would also be disposing of two power barges which are acquired for P100 million each.