RJ offers to buy out PNB stake in Buendia prime lot

MANILA, Philippines - RJ Holdings chairman Ramon “RJ” Jacinto has offered to open up negotiations for the purchase of the 80-percent stake of the Philippine National Bank (PNB) in the prime Buendia land that RJ Group sister company (RJ Ventures Realty) purchased in 1996 for $140 million.

Due to the Asian crisis, the property was foreclosed by PNB but the Supreme Court reversed the foreclosure and returned possession to RJ recently. RJ also claimed in court that political persecution by the administration of former President Estrada caused the foreclosure.

“An amicable settlement wherein we buy out PNB will clear up and resolve the pending legal issues surrounding the property,” RJ Jacinto said in a press statement.

PNB lost the Supreme Court case in 2007 when the latter upheld with finality the Court of Appeals decision that RJ was not in default and all collaterals should be returned to status quo ante or the situation prevailing on Feb. 25, 1999, before the dispute occurred. At that time RJ had the title and possession of the property.

Through a writ of execution, Judge Rommel Baybay of RTC-Makati, Branch 132 recently returned possession of the prime Makati property to RJ.

“We are investigating the mysterious circumstances of how PNB was able to hold the writ of execution for about a year and a half in the sala of Makati RTC Judge Villarosa. Normally, a final Supreme Court order must be implemented at the latest within 90 days. In this case, only after the RJ Group asked for the transfer and consolidation of the case to Judge Baybay’s branch, did the writ returning possession to RJ come out.”

“PNB has recently gone to the Court of Appeals to overturn the writ of execution issued by RTC Judge Baybay which implements the Supreme Court order. So in effect – PNB lawyers are asking the Court of Appeals to overturn a final Supreme Court decision. This is clearly a desperate legal move on the part of PNB.

This has gone to the CA and Supreme Court already. Now PNB lawyers want the 10-year old case to make the rounds again,” RJ Jacinto said.

The RJ Group invested 20 percent or $28 million and paid a one-year interest payment of $12 million for a total of $40 million. PNB listed the property in 2007 at P200,000 per square meter after it lost the case in the Supreme Court.

“The simplest approach is for PNB to return our $40 million and we return the land. But if that’s not acceptable and to end this once and for all, the RJ Group, together with the backing of an investment group, is offering to buy out PNB’s stake at the indicative price of P200,000 per sqm that PNB itself published for prospective buyers,” Jacinto said.