GSIS wants greater private participation in sale of prime RE assets

MANILA, Philippines - Following failed biddings of smaller landholdings, the Government Service Insurance System (GSIS) is looking at selling some of its prime real estate properties to attract greater private sector participation and allow the country’s biggest pension fund to realize the full value of its assets.

GSIS president and general manager Robert Vergara said the agency has several big-ticket items it may sell.

 â€œWe’re looking at selling bigger assets after a failed  bidding of some of our residential properties.  By selling bigger assets, maybe we can ensure bigger participation,” Vergara said.

Vergara said the fund owns a property in Bonifacio Global City located near the parcels of land being sold by the Social Security System.  He said the decision to divest its Fort Bonifacio property would be hinged on the success of the sale of the SSS property.

Aside from that, Vergara said GSIS also owns a prime property along Salcedo Village in Makati.  The land used to be the former office of the GSIS.

Vergara said the agency is now preparing the sale of Philcomcen building which sits on a 2.4 hectare property along Meralco Ave.

Also to be disposed is an 18,498 square meter property located at the corner of Dona Julia Vargas Avenue.  The land is being used as an impounding area by the Metropolitan Manila Development Authority. The appraisal value of the lot was around P1.6 billion in 2010.

Vergara said the agency is still bent on selling the former Jai-Alai property, which was ordered demolished by former mayor Lito Atienza.  The lot, located next to Sta. Isabel College on Taft Avenue, has an area of 6,470 square meters. It  was appraised at P300 million also in 2010.

Vergara, however, said GSIS, with total investible funds of P725 billion, is not in a rush to sell its prime properties and may just develop them to maximize the full potential of these assets.