GSIS gains P566M from lot sale

MANILA, Philippines - The Government Service Insurance System (GSIS) stands to gain more than P566 million from the sale of two of its prime lots in Metro Manila.

These properties include the Philcomcen building located in Ortigas, which was acquired by the Gotianun family’s Filinvest Land Inc. for P771.5 million.  The property had a book value of only P234 million.

Also successfully bid out were the 2,076 square meter CUL Transit property on Commonwealth Avenue in Quezon City and Polymedic Apartment 2 in Mandaluyong City.

The CUL property, with a book value of P50 million, was sold to Global 360 Development Corp. for  P78 million.

“The results are overwhelming. We were able to sell them at rates way beyond our asking price through a transparent bidding process” GSIS president and general manager Robert G. Vergara said, noting there was no better time to unload the assets given a booming real estate market.

“This milestone bodes well for auctions that we will be holding in the future,” Vergara said, adding “this will positively impact on the financial standing of the institution.”

Other real estate assets offered to the public by the state pension fund were  Polymedic 1, the 821 sqm  LA’O property in Ermita, Manila, and the former Jai Alai property in Manila (6,470 sqm).

Nine groups, including real estate developers, participated in the  bidding.

Vergara earlier said the GSIS had some P30 billion worth of real estate properties that may be put on the auction block in order to boost its liquidity position.

Based on unaudited financial data, total assets of the GSIS climbed eight percent from January to November last year to P784.1 billion.