SSS sees P1.2-B earnings from property sale, leases this year

MANILA, Philippines - The Social Security System expects to earn P1.2 billion from the lease and sale of its properties this year.

SSS senior vice president May Catherine Ciriaco said SSS has already raked in P274.5 million in the first half from the lease and sale of some of its real estate properties such as residential and commercial lots, condominium units, buildings, and parking lots.

The state-run pension fund expects another P289 million in the second half from the lease of the same assets, she said.

Together with an estimated P696.5 million in earnings from the sale of the fund’s properties scheduled later this year, Ciriaco said SSS stands to earn an additional P1.2 billion for 2015.

 “Contrary to recent news reports, SSS assets for the most part have not remained idle (because) about 70 percent of our P17.9-billion investment properties have been on lease and are bringing in regular income for the SSS,” Ciriaco said.

 “The rest of SSS assets are either for sale, or are retained as SSS property due to their expected increase in value,” she said.

The fund will be auctioning off more condominium units, parking lots, and acquired lots before the year ends. SSS has also scheduled other properties worth a total of P253.6 million for bidding next year. “Meanwhile, as part of the pension fund’s long-term strategy, the SSS intends to maintain its ownership of select prime properties such as Fort Bonifacio in Taguig City and East Triangle in Quezon City, given the expected appreciation in their real estate value,” Ciriaco said.

The Commission on Audit earlier this month said SSS could have earned at least P198.1 million more if it has rented out idle assets.

“Measures intended to maximize SSS income from its real estate properties are already underway. Even if the SSS has not rented out certain properties, the SSS has already registered gains from their appreciating value,” Ciriaco said.

 

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