RCBC sells P130M worth of foreclosed assets

The Yuchengco-owned Rizal Commercial Banking Corp. (RCBC) has disposed of P130-million worth of foreclosed assets in two public auctions.

The successful sale held two weeks ago encouraged the bank to proceed with more asset sales not only in Metro Manila but also in key cities across the country.

The ROPAs are 50 properties from its inventory of acquired residential and commercial lots in greater Manila area. Real estate service provider CB Richard Ellis is the auction manager for most of its foreclosed assets.

RCBC sold P40-million worth of foreclosed properties in its first auction in May this year.

"The second auction was far more encouraging given the large number of interested buyers and properties sold," RCBC senior vice president and Asset Management Group head Adeline Carbonell said, adding that the second asset sale involved better-quality properties in prime locations.

These properties are mostly residential lots in strategic locations, including Quezon City, Makati City, Parañaque City, Muntinlupa City, and the sub-urban areas of Cavite.

Carbonell hopes to generate at least P400 million in the auction of ROPAs for the year.

RCBC will likewise dispose of bad assets through public sealed biddings, special purpose vehicles (SPVs), and joint venture arrangements with property developers.

The next wave of auctions for the second semester will be held in Bulacan and Tarlac in September, Nueva Ecija and Cagayan de Oro in October, Davao and General Santos in November, and Metro Manila in December.

Earlier this year, RCBC sold P2.1 billion worth of bad assets to the ADM Maculus Fund, an SPV managed by the ADM Capital group.

Another P1-billion worth of preferred shares is being offered as part of its capital raising activity to meet the new international standards as well as remain competitive in the domestic financial markets.