GSIS defers sale of Port Area property

The Government Service Insurance System has deferred the disposition of its Port Area property, which could have been the state-run pension fund’s biggest asset sale to date.

GSIS investment bids and awards committee chair Gracita Gilda V. Bocanegra said in an April 17 advisory, that the earlier scheduled deadline of May 3 for submission of bid proposals was postponed until further notice.

As such, the pre-bid conference as well as deadline for registration and payment of joining fee this month were likewise postponed, said Bocanegra, also senior vice president at the GSIS’s fund management group.

GSIS officials contacted by the Inquirer declined to say why the sale was deferred, citing “confidential” reasons.

Based on the invitation to bid published last month, the two lots with areas of 672,645 square meters and 109,212 sqm both along Manila Bay will be sold at a minimum bid price of P19.9 billion.

“Lot 1 of the property is the port area known as MICT [Manila International Container Terminal]. It is under the management and supervision of the Philippine Ports Authority pursuant to Presidential Decree No. 857 and PD 1284, and is presently occupied by International Container Terminal Services Inc. (ITCSI),” the GSIS said.

The smaller lot, the GSIS said, was earlier declared a socialized housing site in 2002 but is currently occupied by informal settlers.

The lots are located within Tondo district in Manila.

GSIS president and general manager Jesus Clint O. Aranas earlier said that “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.”

But Aranas said they “expect to fetch a good price as it is situated in the Manila Bay area where properties have enjoyed a 10-15 percent appraisal gains over the last five years…”

“We find it timely to liquidate the Port Area property and take advantage of the attractive real estate market values in the Manila Bay area. In fact, we are eyeing a considerable gain on the sale of this asset.This will go to the pool of assets that can be invested,” Aranas had said.

The last time that the GSIS successfully sold properties was in 2014, when two prime lots in Bonifacio Global City were bid out.