FLI backs out of SSS Pasay property bidding

State-run pension fund Social Security System failed to auction off the long-term lease of several pieces of prime land near Manila Bay’s fast-rising gaming hub, as the lone prospective bidder did not submit a bid.

The SSS media affairs department told the Inquirer yesterday “there was a failure of bidding because Filinvest Land Inc. did not submit its lease bid” on Monday for the 25-year lease of HK Sun Plaza and an adjacent vacant lot.

Gotianun-led property developer Filinvest Land was the lone entity that earlier purchased the terms of reference for the lease of the HK Sun Plaza property covering a 44,000-square meter warehouse and the 6,000-sqm vacant lot located at the Financial Center Area along Macapagal Avenue and Roxas Boulevard in Pasay City.

Filinvest Land also passed the evaluation of the eligibility documents it submitted on Dec. 1, the SSS said in a bid bulletin last Dec. 2.

The minimum bid on rental rate is P16 million per month for the 25-year lease period, including a six-month fit-out period, the SSS earlier said.

In a Nov. 24 bid bulletin, the SSS noted that Filinvest Land had expressed intention to undertake a “massive renovation” of the property and sought to extend the lease period to 50 years, renewable for 25 years. However, the SSS maintained that it will only lease out the property for 25 years.

Filinvest Land had also sought to extend the rent-free period to 18 months, but the SSS kept the six-month rent-free fit-out period, citing its leasing guidelines approved by the Social Security Commission.

SSS president and chief executive Emilio S. De Quiros Jr. earlier said, “we know there is good development in that area due to Entertainment City, so land prices are going up, ” hence they should “keep” the property instead of selling it.

The SSS was also selling 59 commercial lots at the Manila Harbour Center in Tondo district.