PCGG to sell P16.5B ‘Payanig sa Pasig’ land soon
MANILA, Philippines – The Presidential Commission on Good Government (PCGG) is set to sell for at least P16.5 billion its “crown jewel” in Ortigas Center, nearly three decades since it was surrendered to the government by an associate of the late President Ferdinand Marcos.
PCGG Chair Andres Bautista said on Thursday that the Privatization Council (PrC) of the Department of Finance (DOF) approved on Feb. 26 the bidding of the 18.5-hectare “Payanig sa Pasig” property for a minimum price of P16,450,553,000, or P89,461.10 per square meter.
Bautista said that the PCGG would be selling it to the private sector on an “as-is-where-is” basis since issues have continued to hound the mixed-use property.
“[With] respect to ownership, we do not think [there are issues]. [As to] possession, yes [there are]. Right now, the PCGG is only able to get rent [from the tenants in] around 8 hectares,” Bautista said.
Shortly after the 1986 People Power Revolution, businessman Jose Y. Campos surrendered to the PCGG the two land titles of the mixed-use property owned by Mid-Pasig Land Development Corp. (MPLDC) located at the heart of three major thoroughfares in Pasig City, namely, Ortigas, Meralco and Doña Julia Vargas Avenues.
Bautista said that the first land title in PCGG’s possession, covering 16 hectares of the property, was purchased by Campos’ MPLDC from Ortigas and Co. on Aug. 10, 1971 for P6.4 million. The second title, which covers 2.48 hectares of the property, is a deed of transfer from Ortigas and Co. to MPLDC dated Dec. 9, 1974.
While government has the land titles to the property, tenants occupying a significant portion of the property, which is being claimed by former Ilocos Sur Gov. Luis “Chavit” Singson’s Blemp Commercial Philippines Inc., have not paid its rent to the PCGG.
“Given the current state of affairs, I don’t think the government is able to maximize the value [of the property] so perhaps it’s time to privatize it,” Bautista said.
By selling the property on an as-is-where-is basis, Bautista said that the winning developer would “essentially step into the government’s shoes.”
“[That’s why we] let the developers know as to what the position of the government is [with] respect to the property,” he said. “We will show them the [pieces of] evidence of our ownership.”
Despite the pending cases in the Pasig Regional Trial Court, Bautista said that at least 10 big real estate developers have already expressed their interest in participating in the sale of the property. He added that the plan to sell the property to the private sector has been submitted to the Department of Justice (DOJ) at least three years ago.
“As the agency that exercises administrative supervision over the PCGG, we told the DOJ that we are looking to do this,” Bautista said. “It’s a challenging property. We had to make sure that before we sold it — in terms of timing — it’s a good time to do the sale both from a commercial and legal standpoint.”
Since the DOJ is part of the PrC, alongside the DOF, the National Economic and Development Authority and the Department of Finance, Bautista said that it gave its implied approval on the sale.
The Payanig property is considered by the PCGG as “the most valuable property of its size in the Philippines.”
“The sizable land area and the location of the property [are] perfect for multiple real estate development options. The property’s rectangular shape likewise provides flexibility in terms of design and master plan,” Bautista said.
On April 17, Bautista said that a general briefing for the property’s bidders would be held at the agency’s office in Mandaluyong City. The receipt and opening of bids, on the other hand, is set in June.
Since the Aquino administration came into power, Bautista said that the PCGG has already sold 10 sequestered properties worth around P800 million. SFM/AC
