HGC nixes air rights from sale

MANILA, Philippines - State agency Home Guaranty Corp. (HGC) said it will not push through with the previously published negotiate sale of the air rights above the PNR rail track stretching from the junction of Samson Road in Caloocan to Sen. Gil Puyat Ave. in Makati city.

The announcement was made following a meeting among the Department of Finance, HGC and Vice President and Housing and Urban Development Coordinating Council (HUDCC) chairman Jejomar C. Binay at the Coconut Palace.

A key shelter agency under HUDDC, HGC is mandated to guaranty private investments in housing. HGC’s ownership of the air rights came in exchange for assuming the guaranty obligation to investors in the 1996 Sariling Pabahay sa Riles housing project, a joint venture project among PNR, NHA, HUDCC and New San Jose Builders Inc. To recover HGC’s exposure, the air rights and several other assets have been slated for disposition through outright sale, joint venture arrangement or other schemes.

The air rights is a crucial component in he development of the proposed SLEX-NLEX elevated connector project. The Department of Public Works and Highways (DPWH) and the Department of Transportation and Communication (DOTC) are backing separate proposals for said connector project.

While HGC will push through with the sale of its other assets, the air right is withdrawn from the list of assets for sale. Considering the value of the property to the government’s infrastructure program, it is deemed in the best interest of the government that said property remain state-owned.

HGC will publish the appropriate notice to inform parties who have signified interest on the air right of this development.