RCBC to dispose of P300-M bad assets

The Yuchengco-controlled Rizal Commercial and Banking Corp. (RCBC) is disposing of P300 million worth of real or other properties acquired (ROPA) through a public auction, enlisting the services of real estate consultancy firm CB Richard Ellis (CBRE) as auction manager.

RCBC senior vice president and asset management group head Adeline Carbonell said the auction, scheduled on May 18, is the first in a series of public auctions to liquidate the bank’s inventory of ROPA.

"We are also eyeing the SPVs (special purpose vehicle) and joint venture arrangements to turn these idle assets into performing or revenue generating assets," she added.

The auction is in line with RCBC’s strategy to dispose of non-performing assets (NPAs) and further strengthen the bank’s balance sheet.

"We are confident that these foreclosed properties, which are in strategic locations, will attract a lot of buyers," she said.

Meanwhile, a CBRE executive noted that the Philippine property market is well on its way to recovery.

"Now is the best time to buy from the secondary market. We see a lot of buyers interested in bank properties - overseas Filipino workers (OFWs) and middle-income families, among others. Besides, these offer value for money because buyers can immediately use the properties," CBRE chairman Rick Santos said.

Properties for sale include condominium units, house and lot packages in subdivisions, and prime residential and commercial properties in mega Manila which includes the CALABARZON region and Bulacan.

Buyers have the option to pay in cash or may avail of financing from RCBC through the contract-to-sell system.

Earlier this year, RCBC sold P2.1 billion worth of bad assets to The ADM Maculus Fund, a special purpose vehicle managed by the ADM Capital group.

Another P1-billion worth of preferred shares have been offered as part of the bank’s capital raising activity to meet new international standards as well remain competitive in the domestic financial markets.

It still has to dispose of more than P2-billion worth of non-performing assets (NPAs) through public auctions or the SPV route.