PNB bids out foreclosed Manila land to ICTSI for P3.7B

Taipan Lucio Tan’s Philippine National Bank (PNB) successfully bid out a sprawling parcel of land in Manila’s port area to tycoon Enrique Razon Jr.’s International Container Terminal Services Inc. (ICTSI) for P3.7 billion.

In a statement over the weekend, PNB said the sale of the 3.2 hectare foreclosed property was done via a competitive challenge that was supervised by auditing giant PricewaterhouseCoopers (PWC).

“This transaction will monetize another low-revenue-generating foreclosed property, giving the bank additional financial resources that it can use to pursue its strategy and capture opportunities brought about by the recovering economy,” said PNB president and CEO Jose Arnulfo “Wick” Veloso.

The bank hired PWC “to ensure an independent, transparent and competitive bidding that would be beneficial to PNB.”

Also providing assistance were partners Isla Lipana & Co. for bid administration and Cabrera & Co. for legal support.

The land was an industrial lot and building within the Manila Harbour Centre Industrial zone in Tondo, Manila. It had a minimum bid price of P3.2 billion or P100,000 per square meter.

PNB said the auction was held last April 19 and was open to individuals, sole proprietorships, partnerships or corporations.

The sale marks another step in PNB’s efforts to generate income or monetize idle land assets.

It earlier completed a property-for-share swap for the 10-hectare PNB Financial Center along Macapagal Boulevard in Pasay City, the PNB Makati Center in the Ayala central business district and a foreclosed eight-hectare property at the corner of Buendia Avenue and Paseo de Roxas in Makati City.

PNB’s profits in 2021 surge over 12 times last year, partly due to the property-for-share transaction with subsidiary PNB Holdings Corp.

PNB ended the previous year with a consolidated net income of P31.7 billion compared to P2.6 billion in 2020.

Earnings were also driven by the 43 percent growth in net service fees and commissions, followed by a jump in bancassurance and underwriting deals. PNB also earned fees from the use of its digital platform.

Interest income hit P34.8 billion last year while PNB maintained its net interest margin of 3.2 percent. Its loan portfolio added 1 percent to P607 billion while total deposits increased by half a percent to P894.9 billion. INQ