Investors snub bidding for two government lots in Makati

The government was forced to declare a failed bidding for two parcels of land adjacent to the controversial Mile Long property in Makati that officials hoped would generate at least P360 million.

The lots were the only properties unencumbered by any controversy that forced the Privatization Management Office (PMO) to exclude the more disposable portions of the property now occupied by the Prieto family.

Sources from the PMO revealed yesterday that no one showed up at the public auction for the two lots – one of which was a 2,798-square meter property along Sen. Gil Puyat Ave. corner Tindalo st. and the other a 437 sqm. land at the corner of Amorsolo st. and Dela Rosa st. in Makati City.

The PMO originally set a floor price of P328.7 million for the bigger parcel of land and a floor price of P29.997 million for the other, but neither property attracted any buyer.

The PMO earlier said that at least four to six investors were interested in the properties but none of them actually showed up or made a bid after acquiring the bid documents before the actual auction.

Sources said the indicative price might have been "too much" for any buyer.

The failure of the bidding was reminiscent of the Bel-Air property used to be occupied by the International School – an auction also ignored by buyers because the price was too high.

Sources from the finance department earlier said that the PMO was forced to bid out the two lots ahead of the privatization of the bigger and more attractive properties since the existing tenants wanted to extend the terms of their lease contracts.

The contested lots are subleased by the Prieto family, owners of the Philippine Daily Inquirer (PDI). The government, however, has not been able to sell these lots as the Prietos threatened to file charges if evicted from the property.

The Prietos own Sunvar Realty Development Corp. that built the arcades along the Amorsolo creek. Sunvar Realty leased the property from a government entity, the Technology Resource Center Foundation (TLRF) which leased it from the state run National Power Corp. (Napocor) for a 25-year period with a 25-year extension at P1 per sqm.

TLRF, later renamed as the Philippine Development Alternatives Foundation (PDAF), subleased the land to Sunvar Realty for P800 per sqm. in 1978.

The government had assumed the rights to the 125,617-sqm. property along the Amorsolo creek previously held by the PDAF including the Mile Long and Creekside arcades, Sunvar Plaza, the Ecology Villages, among others.

To avoid conflict, the PMO decided to bid out only the uncontested portions of the Makati property while leaving the contested portions for executive resolution.