Gov’t mulls options on Makati properties

The government is considering the possibility of either an outright sale or long-term lease for its Makati properties including Ecology Village which is earmarked for privatization this year.

Finance Secretary Jose Isidro Camacho told reporters yesterday that the Ecology Village property would be re-assessed soon to determine an indicative price for either a lease or outright sale.

"We haven’t really made a policy decision on how to undertake the privatization; we are just looking into the different modes to see which one would serve us best," Camacho said.

The Ecology Village property includes the area covered by the controversial Mile Long Center in Makati. It is one of two Makati properties that have been lined up for immediate privatization by the Arroyo administration.

The Mile Long property is owned jointly by the National Government and the National Power Corp. (Napocor) which has since ceded it to the Power Sector Assets and Liabilities Management Inc. (PSALM).

"What I will suggest is for the Napocor to outsource the disposition of the asset to the Privatization Management Office in order to simplify the process," Camacho said.

According to Camacho, the National Government has to formalize an arrangement with PSALM for the disposition of the asset since PSALM is now technically in charge of the property on behalf of the Napocor.

Should government decide to lease out the property, the government would benefit should the property market manage to improve within the next 25 years, Camacho said.

If the property is sold outright, however, Camacho said, the price may not be as attractive, but the deficit-ridden government could get cash outright.

The other Makati property, currently leased by International School, has already attracted Ayala Land Inc., Robinsons Land and two other developers that have signified interest in bidding for the property.

Sources privy to the ongoing privatization proceedings disclosed yesterday that the IS property will be bid out possibly before the end of the year. The property has already attracted four major developers.

The IS property has been lined up for privatization since early this year, but the government has been unwilling to immediately divest of the property due to unfavorable market conditions.