RP to sell biggest property in Tokyo

The Department of Finance (DOF) said yesterday that it will sell its biggest property in Tokyo, Japan within the year.

Finance Undersecretary Gaudencio Mendoza Jr. in an interview with reporters said this move will allow the government to increase its revenues to finance its infrastructure projects and social services.

Mendoza said the bids and awards committee (BAC) will meet anytime next week to finalize the terms of reference of the planned privatization of the Fujimi or Kudan property.

The Finance official said the asset is a major real estate property of the Philippines in Japan which is located in the prime commercial and residential district of Fujimi-cho, Chiyoda-ku in Tokyo, Japan.

He said the lot size is at 4,361.85 square meters. It is also the site of the residence of the Philippine ambassador to Japan.

According to Mendoza, the Office of the President has approved the DOF’s request to fasttrack the property auction to raise more funds for the government.

It was learned that the government still has to determine the latest valuation of the property before it firms up the terms of refe-rence for the sale this year.

So far, the Philippine government, through the DOF, has already signed the 50-year service development agreements with Berg Co. Ltd for the Naniwa-Cho property that carried a net present value of ¥759.3 million (P334.85 million) and Obanoyama property with a net present value of ¥449.6 million (P198.27 million).

Berg would spend ¥827.9 million (P365.10 million) and ¥490.2 million (P216.18 million) in development fees for the Naniwa-Cho and Obanoyama properties, respectively. Both properties are in Kobe, Japan.

It has also recently entered into a service development agreement with the Nagayama-Taisei consortium for the right to develop the four-story building that has a floor area of 2,489 square meters in Nampeidai in Tokyo, Japan.

The DOF, however, has yet to receive the ¥480 million (P211.68 million) service development fee from the Nagayama-Taisei consortium.

Based on the Nagayama-Taisei group’s proposal, it will construct a building on the property worth ¥1.7 billion (P749.70 million) and pay the government an additional ¥480 million (P211.68 million).

The Japanese group would, in turn, reserve 22 percent of the building for the exclusive use of the government, specifically to house the Philippine consulate. The duration of the development and lease agreement is 50 years.

President Arroyo, in her state-of-the-nation address promised to undertake 90 projects which will need a funding of P370 billion funding.