Gov’t to sell Napocor complex in Quezon City
By Myrna M. Velasco – July 3, 2018, 11:00 PM
from Manila Bulletin
The Philippine government, through the Department of Finance (DOF), has started strategizing on a divestment plan for the real estate complex housing state-run National Power Corporation (Napocor) and other energy companies, for this to become part of the cash build-up measure for the State coffers.
The finance department has given its instruction to the Power Sector Assets and Liabilities Management Corporation (PSALM) to study the sale option for the Napocor complex. Finance Secretary Carlos G. Dominguez III is the chairman of the board of PSALM.
As emphasized by Finance Undersecretary Bayani H. Agabin, “we are looking for ways to maximize value for the Napocor complex, considering that the areas around it have already developed.”
He disclosed that at this stage, they have been sorting out two options: one, is a propounded straight sale of the real estate asset; and the second is, for government to enter into a joint venture (JV) agreement with another party that will advance its development.
The government admitted though that it has yet to draw up valuation as to how much it would be willing to sell the asset at – and that will be carried out with the help of third party consultants.
“We will be getting consultants to help us determine the best use for the property,” said Agabin, who is also Dominguez’s constant representative to PSALM Board meetings. Aside from the Napocor headquarters, the property is also hosting the offices of state-run firms National Transmission Corporation, PSALM as well as the head office of the National Grid Corporation of the Philippines.
It was gathered that the entities holding their offices in the area have already been advised to start searching for properties where they can relocate once the sale plan for the Napocor complex will be firmed up. Aside from the Napocor complex, PSALM has also been advancing the sale of “universe of real estate assets” so it can raise additional proceeds to wipe out its humongous debts and contingent liabilities.
As culled from a 2015 sale plan approved by the PSALM Board then, the government was targeting to divest: the sites of decommissioned power plants; lands not related to power generation; lots under land lease agreements – including those previously offered to new power plant owners but has remained unsold; the lands adjacent to or near privatized power plants; as well as the properties adjacent to or near the remaining unsold power plants; and the facilities of PSALM which are still under contracts with independent power producers.
As specified, PSALM’s real estate assets comprised of: 5,991 lots for a total area of roughly 75 million square meters for those considered as ‘alienable and disposable’; while 107 lots for a total area of 22.367 million square meters had been labeled inalienable or cannot be sold. The balance of 3.192 million square meters had been undergoing titling documentation, according to the company.
