PLDT to sell P5-B real estate properties

MANILA, Philippines - Dominant carrier Philippine Long Distance Telephone Co. (PLDT) is rationalizing its real estate portfolio to raise at least P5 billion from the sale of several prime properties as it scouts for a new headquarters to save on rental payments.

PLDT chairman Manuel V. Pangilinan said in an interview with reporters that the company is set to sell several real estate properties to raise funds to acquire a property that would house the revenue generating arms of the PLDT Group.

These properties, Pangilinan said, include the three-hectare property in Dansalan in Mandaluyong City, its old traffic office along España in Sampaloc in Manila as well as a lot in Filinvest Corporate Center in Alabang in Muntinlupa City.

He added that the company is also planning to sell the warehouse of defunct Pilipino Telephone Corp. (Piltel) in Sta. Rosa, Laguna as well as the PLDT Garnet exchange building in Ortigas Center in Pasig City.

 â€œWe presented to the PLDT Board the rationalization program of the property portfolio of PLDT because we have a number of excess properties that we no longer use for the main telco business. So a number of them were presented to the board for disposal, divestment, or co-development with property developers,” Pangilinan said.

Pangilinan pointed out that the PLDT group is not in the property development business so it would dispose or co-develop several properties. “As you now we are not in the real estate business,” he explained.

According to him, PLDT’s property group is drawing up a migration plan for the company’s Ramon C. Cojuangco (RCB) Building and the Makati General Office (MGO) in Makati City.

“Regarding the headquarters in the Cojuangco building and MGO that is about less than one hectare. The cable vault or the telco lines are under the buildings and it will be difficult and expensive to take them out,” he said.

According to him, the PLDT group is undertaking a migration plan for two to three years.

“If this is done, we are able to offer the two buildings which is about a little less than a hectare either for co-development or an outright sale because we really don’t need to be in that place,” Pangilinan said.

The PLDT chief said the telco giant is looking for a new headquarters that would house the Group’s operations.

 â€œThe second part of it is how we can integrate the manpower complement of the PLDT group in one headquarters building,” he added.

According to him, the PLDT Board is now assessing whether to put up a new building or acquire a building that would serve as its new headquarters.

He confirmed that talks are ongoing with the owners of Alphaland Building along Ayala Ave. in Makati City.

“Right now they are quite dispersed because the space at Smart Tower is limited. It is helpful if the revenue generating units of the Group together with the finance and networks are in one location that is why we are looking at a building like Alphaland because that will enable the PLDT Group to consolidate its main operating units under one wing rather than leasing space from third parties or being dispersed therefore the coordination is much more difficult,” he said.

He said the PLDT Group could save as much as P90 million in rental payments.