Gov’t gets P19B offer for FTI property

The government has received a P19-billion offer for the state-owned 103-hectare Food Terminals Inc. property in Taguig City, Finance Secretary Purisima said.

In an ambush interview with reporters, Purisima said a private developer has offered to buy the property for P19 billion, better than the P13-billion floor price earlier set by the Department of Finance (DoF).

The finance chief, however, declined to identify the developer making the offer, saying announcement will be made once President Aquino approved it.

“The Privatization Management Office (of which the finance department is a member) has already approved it, but President Aquino’s approval has yet to be secured,” Purisima said.

Following the President’s approval, the offer will be subjected to a Swiss challenge before it is actually sold.

The government has been trying to sell the FTI property for years, but several biddings for it had failed. Finance officials earlier said some developers were discouraged by the tenants, which are small enterprises, in the property whose contracts have yet to expire.

This is the reason, they said, the investor should be looking at long-term rather than short-term income prospects from the property.

The Government Service Insurance System previously offered to buy the property for P7 billion, but the finance department said such an amount was too low and unacceptable.

Purisima said that this time, however, the government would be in an advantageous position should the latest offer be accepted because the amount is much higher than the floor price.

The government is hard pressed to generate income, such as through sale of properties believed better run by the private sector, as it vows to reduce its budget deficit over the medium term.

The DoF said programs to improve tax collection are in place, but economists said the government should also rely on other forms of revenue generation, such as sale of state-owned assets, to improve its fiscal position.