GSIS selling Port Area lots for P20 billion

MANILA, Philippines — The largest real estate asset of the Government Service Insurance System (GSIS), located at the Port of Manila, is being readied for auction for a minimum bid price of P20 billion.        

GSIS president and general manager Jesus Clint Aranas said the state pension fund has decided to auction off the property as it does not contribute to its operations.

“Although it tops our big-ticket assets, we are selling the Port Area property as it does not contribute to our operations except for valuation gains,” Aranas said in a statement.

“And we expect to fetch a good price as it is situated in the Manila Bay area where properties have enjoyed a 10 to 15 percent appraisal gains over the last five years,” he said.

“The Port of Manila Bay serves as the largest and the premier international shipping gateway to the country which spells economic growth,” he pointed out.

According to the state pension fund, the property consists of two lots with land areas of 672,645 square meters and 109,212 square meters. It is located near the vicinity of Pier 2 Manila North Harbor and Negros Navigation Ferry Terminal in Tondo, Manila.

The GSIS said the terms of reference for the auction are expected to be issued on March 18.

As of end-November last year, the GSIS reported a total net income of P84.15 billion, up 52.52 percent from the P55.17 billion registered in the same period in 2016.

Total assets, meanwhile, rose eight percent to P1.09 trillion, driven by income from financial assets, which doubled to P52.12 billion.

Of the amount, the GSIS said 62 percent represented investments in financial assets, 24 percent in loans to GSIS members, six percent in investment properties, four percent in cash, and four percent in property, equipment and other assets.

Earlier, the GSIS said it is planning to optimize its investments in real estate properties, among others, in order to increase its revenues and strengthen its financial profile.

The state pension fund recently launched its global investment program, which involves investing $800 million in foreign-currency denominated instruments.

Aranas earlier said the state pension fund was planning to further increase its overseas investments to about five percent of its assets from the current one to two percent share.