State-run pension fund Social Security System will dispose of more of its real estate assets this year while eyeing to adjust the respective allocations of its equity and fixed income investments.
SSS president Emmanuel F. Dooc said last week the SSS was considering redeveloping idle properties in Makati and Quezon City for commercial or mixed-uses in partnership with private developers.
Among those that may be redeveloped are an old building along Ayala Ave. and Rufino St. in Makati City and a corner lot along Edsa near the SSS headquarters in Quezon City, he said.
The official said they might engage the services of a real estate consultant who would advice them on the best redevelopment options for currently idle properties.
Dooc said they would also auction off more condominium units in the first quarter, following board approval late last year.
The SSS will also sell more lots at the Manila Harbour Center in Tondo, Manila.
Last year, the SSS sold one block composed of 11 lots in the said property for P264 million, although the pension fund had tried to dispose of a total of 59 commercial lots—divided into seven blocks and 12 parcels covering more than 45,000 square meter—worth some P1.5 billion.
These condominium units and lots had been acquired by the SSS through dación en pago.
Dación en pago was defined as “a special mode of payment whereby the debtor offers another thing to the creditor who accepts it as equivalent of payment of an outstanding obligation.”
Also, the SSS would tweak the respective allocations for its equity, fixed income and real estate investments. Dooc said they would propose increasing the share of equity investments to 40 percent of the investment reserve fund from 30 percent at present, and increasing the share of private securities to 60 percent from 40 percent.
Doing so will entail amendment by Congress of the SSS charter, he said.
He said the SSS was also looking at increasing to 20 percent the share of foreign investment to the total portfolio from 7.5 percent, as they considered a foray into overseas investing.
SSS data showed that as of October last year, its total investments stood at P470.2 billion, with an average return on investment of 7 percent.
Government securities worth P182.3 billion accounted for the bulk or 39 percent of the portfolio, followed by equities (P109.2 billion or 23 percent of the total), loans to members (P86.6 billion or 19 percent), bank deposits (P32.7 billion or 7 percent), corporate bonds and notes (P39.3 billion or 8 percent), and real estate (P20.1 billion or 4 percent).