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Business

PNB raises P1.25B in nationwide auction of properties

- Donnabelle L. Gatdula -
The Philippine National Bank (PNB) has sold P1.25 billion worth of properties as of end-July 31 through its monthly nationwide public auctions, a top bank official said yesterday.

PNB president and CEO Omar Byron T. Mier said with this development, the bank is optimistic that the continued excellent performance of the bank’s asset management group (AMG) will contribute significantly in the bank’s profit potential for 2005.

"To date, we have sold over P1 billion worth of properties from our auctions alone. This is on top of sales due to AMG’s other sales platforms. Given such favorable developments, we are able to further decrease our ROPOA level significantly," Mier said.

For his part, PNB executive vice president and asset management sector head Federico Y. Cadiz said the P1.25-billion revenues from property sale translated to selling an average of P50 million per month since the competitive auctions began in August 2003.

Cadiz said PNB has held 40 auctions so far and has calendared 15 more for the rest of the year. The bank’s auctions, he said, are an industry leader in terms of both scope and profitability.

"We are the first bank to hold regular auctions outside of Metro Manila and we are averaging a success rate of 30 percent per auction. We have a good turn-out from the auctions in the country’s key cities such as Cebu, Davao, Baguio, Bulacan, Bacolod, Batangas, General Santos and Zamboanga but we are also present in many satellite cities. More importantly, the competitive bid format has resulted in positive gross margins of 35 percent to the bank," Cadiz said.

Bulk of the properties sold were residential assets worth P1 million and below, as these properties "are more marketable being nice and affordable homes providing value for the buyer’s hand-earned money. Likewise, PNB offers the most attractive and saleable deals in the industry, as shown by our properties‚ pocket-friendly selling terms."

PNB vice president and auction head Romeo Crisostomo attributed the remarkable auction sales to PNB’s extensive network all over the Philippines.

Crisostomo said PNB’s more than 300 branches nationwide have provided the logistics for the mounting of auctions in selected cities and effectively, for an easier property disposal.

"We have devised a monitoring system with our branch managers in these areas so as to keep track of serious buyers who are bidding for a particular property. This way, we are informed beforehand which properties are hot‚ and we can streamline the auction process to service the interested buyers more efficiently," Crisostomo said.

According to Crisostomo, the bank asset management group’s marketing efforts likewise contributed significantly in attracting a good number of both local and foreign buyers, some of whom are even repeat clients interested in purchasing good investments.

"Many foreigners and OFWs come home to buy and invest in the properties they have seen featured in the bank’s website," the bank official said.

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AUCTIONS

BANK

CADIZ

CRISOSTOMO

FEDERICO Y

GENERAL SANTOS AND ZAMBOANGA

METRO MANILA

MIER

OMAR BYRON T

PNB

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