BSP selling golf club for at least P1.736B

The Bangko Sentral ng Pilipinas is selling Evercrest Golf Club Resort, a prime property development in Batangas that it took over from the former Orient Bank, for at least P1.736 billion.

The property was appraised at P1.2 billion about three years ago, but the central bank said its latest valuation now was much higher when taking inflation into account.

The BSP said it expected bid proposals to be submitted by interested parties on Tuesday, saying in a public notice that the minimum bid price must be P1.736 billion.

Evercrest was previously owned by Orient Bank. After a long-drawn court battle, the BSP won the rights over the property and finally got the title to the asset from the Registry of Deeds last December.

The old Orient Bank, owned by businessman Jose Go, made cash advances from the BSP to address liquidity problems before it finally shut down in 1999. Earlier reports said the bank obtained more than P5 billion in loans from the central bank.

BSP Deputy Governor and general counsel Juan de Zuñiga earlier said the central bank was selling the property because it did not intend to operate such property development. Since the BSP had no expertise in running a golf course and country club, it was best to sell the asset, he said.

Since the golf club and resort could not fully pay the liabilities of Orient Bank to the BSP, De Zuñiga said the central bank would look for more properties of the bank that the BSP could take over.

He said the BSP should focus mainly on its core mandates, particularly managing inflation and regulating banks.

Evercrest, the operations of which had been stalled since the BSP’s takeover late last year, is located in Batulao, Nusugbu, Batangas, 72 kilometers south of Manila.

The central bank official said the BSP was optimistic about being able to sell the property within the year.