PSE continues talks on sale of Tektite office

MANILA, Philippines - The operator of the country’s  stock exchange is moving forward with its plan to sell its former office in Ortigas Center this year following several failed auctions.

The Philippine Stock Exchange (PSE) is  in talks with a listed property firm to unload the Tektite office space in Pasig City, an official said.

“Hopefully in 2014 we will be able to announce the sale,” said PSE president and CEO Hans B. Sicat.

Sicat said the PSE is in talks with Philippine Realty & Holdings Corp.(Philrealty) for a buyback of the Ortigas office space.

Philrealty, the developer of the Tektite Towers, has the option to buy back the office space from the PSE. The same goes for Ayala Land Inc., the builder of Tower One in Makati, the home of the PSE’s headquarters.

Sicat said the PSE has also received letters of interest from other parties. The sales of the Tektite office property in Pasig City for P200 million hit a snag after two failed biddings.

In 2011 and 2012, the PSE failed to sell the 4,754.72-square meter (sqm) property that covers three floors and 21 parking slots at the Tektite Towers. PSE targeted to raise P213 million from the sale of the office space.

The PSE currently occupies about 5,000 sqm of office space and a trading floor at Tower One. It used to have two trading floors - one in Makati and another in Ortigas Center - but decided to move out of Ortigas in July 2010 to cut costs and generate profits through leasing or sale.

Sicat said proceeds from the sale of the Tektite office space will be used to partially fund the construction of the PSE’s new headquarters.

The PSE will transfer to its new headquarters in the sprawling Bonifacio Global City in 2016. Construction is ongoing for the building at One Bonifacio High Street.

The PSE earlier announced  it will spend around P800 million for the 26-story building that will offer 6,400 sqm of office space.