SSS takes steps to boost finances

In an effort to reduce its financial burden, the Social Security System (SSS) has leased out a five-hectare foreclosed property along Roxas Blvd.

The lessee is a group of Chinese businessmen planning to establish a Home Depot-type commercial complex in the property near the Philippine National Bank (PNB) complex. An estimated P30 million in annual earnings is expected from the deal.

Still under negotiations are a number of properties with a combined area of five hectares located in areas near the controversial Smoky Mountain. Among the reported interested parties is the owner of the Harbor Center, located in the same vicinity.

SSS officials refused to give further details while negotiations are ongoing except that the government pension fund hopes "to gain substantial earnings from sale or lease."

Meanwhile, SSS assistant vice president for asset management Mariano S. Tolentino said the pension fund still has a portfolio worth P7 to P8-billion.

"These properties still need to be liquefied, either through joint venture activities, outright sale or lease. We hope to achieve this within the year," Tolentino said.

The foreclosed properties are commercial, residential and industrial types located in Metro Manila, areas outside Metro Manila, and other major urban centers like Cebu City.

Meanwhile, the proposed Corporate Center in a four-hectare property in the corner of East Ave. and EDSA fronting the GMA Network Center remains in limbo subject to the re-zoning by the local government of the property to a mixed-use commercial area.

It will be a 25-year build-operate-transfer (BOT) project that would result in a twin tower structure for mixed purposes including residential, commercial, shopping, and parking.

Owned by the pension fund, the SSS submitted an unsolicited proposal to convert it into a P8-billion commercial complex, which would house among others the new SSS headquarters. The development will be undertaken by a joint venture between a foreign group headed by EC Harris and the pension fund.

The proposal was forwarded to the inter-agency coordinating committee (ICC) headed by the National Economic and Development Authority (NEDA) and was given first pass.

Upon receipt of the re-zoning permit issued by the Quezon City local council, the SSS can proceed with final negotiations with the consortium headed by EC Harris. A draft contract will then be forwarded to the ICC for final approval.

Should the Corporate Center project get of the nod of ICC, the present 38-year old, 12-story structure that houses the SSS would be transformed into a hospital for its members.

The pension fund will not shell out cash, rather the property will serve as equity for the joint venture.

The SSS will likewise construct a new P90-million three-story building in downtown Cebu City.

The new structure will rise from the ruins of its former office, which is an old landmark that was destroyed by a powerful earthquake in 1990.

The new concrete and glass building, which will be the hub branch in the Visayas region, will be shaped like the famous Cebu guitar when viewed from the air. It would accommodate more than 7,000 members.

Target date for completion is February 2006. SSS Cebu will be the ninth SSS-owned building spread out in key cities in various parts of the country.