SSS selling real estate properties to boost funds
MANILA, Philippines — The Social Security System is on an asset-disposal mode, announcing that it is selling one of its prime properties in Bonifacio Global City in Taguig for at least P2.24 billion and that it intends to cash in on other pieces of real estate.
SSS President Emilio De Quiros Jr. on Monday said the state-owned pension fund deemed it prudent to sell some of its real estate properties over the short term, given how prices of these assets had become relatively high due to a spike in demand over the last few years.
“We started to look over the entire investment portfolio of the SSS, and we feel that it is a good time to unload our real properties,” De Quiros said at a press conference.
“The property market has gone up and down. Although nobody can really say whether it will continue to go up, based on the cycle we are already at the high side,” he added.
De Quiros said SSS was first selling its 8,300-square-meter property in BGC for a minimum price of P2.24 billion. The parcel of land, located in Bloc 56 at the corner of 25th Street and 10th and 11th avenues, is one of the two SSS properties in BGC. The other one is in Bloc 57.
A pre-bid conference for parties interested in buying the property is set on July 22, while the submission of bids is scheduled for September 4. The winner of the bidding shall be announced on October 2, De Quiros said.
SSS Commissioner Diana Pardo-Aguilar said at the press conference that the property up for sale was acquired by the state-owned pension fund in 2003 for P850 million.
Selling the property for at least P2.24 billion, therefore, would translate to a 164-percent return, Aguilar said.
“We think that a 164-percent return in 10 years–equivalent to over 16 percent per annum–is something that is fair for our members,” she said.
The commissioner said that once the property was sold, SSS would find ways to cash in on other real properties. All its real properties are estimated to have a combined value of P20 billion.
Aguilar said SSS might consider selling, leasing or entering into joint ventures with private firms to develop its other properties.
At the same briefing, SSS Executive Vice President Edgar Solilapsi said the pension fund was looking at buying several stocks given that equity prices had fallen significantly since going beyond 7,000 earlier in the year.
Solilapsi said part of the proceeds of the real-property sale could be used for buying stocks.
SSS is interested in stocks in the telecommunications, banking and finance, and power generation industries, officials said.
