GSIS eyes P600M from sale of old Jai-Alai bldg

MANILA, Philippines - The Government Service Insurance System (GSIS) is putting the former Manila Jai-Alai building and some residential properties on the auction block by the end of this month to realize the value of some of its idle assets, its top official said.

GSIS president and general manager Robert Vergara said aside from the 6,470 square meter former Jai-Alai building on Taft Ave., the state-owned pension fund would sell Polymedic Apartments 1 and 2 located in Mandaluyong City, Cul Transit A and B along Commonwealth Ave. in Quezon City as well as the former LAO property along A. Mabini St. Ermita.

The fund hopes to raise around P600 million from the sale of these properties scheduled on Feb. 28.

GSIS is looking at a minimum bid price of P455.36 million for the Jai-Alai building, P62.4 million for the LAO property, P24.75 million for the Polymedic Apartment 1, and P7.8 million for Polymedic Apartment 2, P30.72 million and P31.56 million for Cul Transit A and B, respectively.

The Polymedic Apartments are old two-story residential-type buildings.

Interested bidders were required to submit before the pre-bid conference scheduled tomorrow a bank certification from any universal bank that it has a bank guaranty or deposit equal to the minimum bid price or a stand-by letter of credit equal to the minimum bid price.

Vergara said other assets that the GSIS intends to dispose of this year include a property located at the corner of Dona Julia Vargas Avenue and Meralco Avenue which is being used as an impounding area by the Metropolitan Manila Development Authority (MMDA) and the former GSIS office in Makati.

He said the company is holding on to its real estate assets in Fort Bonifacio given the appreciation of property values at the former military complex.

“We do have some properties in Fort Bonifacio, but I think we want to hang on to those and maybe think about doing something with them in 2014 and 2015. After all, property prices in Fort Bonifacio are still on an upward trend, so we would like to wait for a better moment to redevelop or sell these properties,” Vergara said.

“I like the idea of getting paid cash for our assets and just invest the cash in something else but we are also looking at the possibility of pursuing joint venture arrangements with property developers with respect to our valuable properties,” he said.

Vergara said the GSIS is ready to develop its own properties in case of a failed sale.