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PSALM to rebid 3 real estate assets

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By Myrna M. Velasco

State-run Power Sector Assets and Liabilities Management Corporation (PSALM) is scheduling to rebid the three real estate assets after its first attempt to sell the properties failed.

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The properties being set for sale by the company are those in Barangay Aplaya in Jasaan, Misamis Oriental; another one is in Toledo, Cebu; and the third one is in Laoag, Ilocos Norte.

In a statement to the media, PSALM indicated that “the bid opening exercises conducted on September 5 for the Jasaan and Toledo assets were declared a failure when only one bidder for each asset participated and offered bids.” There was no bidder for the Laoag property.

There had been no timeline set yet for the rebidding, although PSALM has targeted to conclude such asset divestments within the year.

PSALM President and CEO Irene Joy Garcia emphasized that the company is “committed to privatize these land assets within 2019, but it is also important that the adjusted bidding timetable expediting the second round of bidding is in line with the applicable laws.”

The state-run firm has been latching on hopes that proceeds it can fetch from these asset privatizations could be utilized “to augment funds to settle PSALM’s assumed financial obligations.”

For the property in Aplaya, Misamis Oriental, PSALM fleshed out that such consists of 49 lots straddling a total area of 155,504 square meters; while the Cebu asset comprises of 21 lots with a total area of 129,589 square meters. The Laoag property, on the other hand, spans a total area of 3,530 square meters.

The minimum bid prices for the real estate assets as previously cast by the state-run company had been at: P567,626,950 for the Misamis Oriental property; and P171,473,500 for Cebu.

PSALM said the real estate assets in Misamis Oriental and Cebu in particular were previously the sites of diesel-fired power plants of precursor-firm National Power Corporation – the power facilities of which had already been privatized based on their ‘scrap’ values.

These properties, according to PSALM, had been set back to “ground zero state” or with just very minimal structures left, thus, it is already ideal for these assets to be placed on the auction block.The sale of the land assets is on “as is, where is basis,” the company has reiterated.

The universe of PSALM’s real estate assets covers aggregate 100 million square meters – consisting of 6,160 lots; the bulk of which or 4,771 lots are located in Luzon; followed by Mindanao with 1,284 lots; and 105 lots in the Visayas.

On the order of priority, PSALM said divestments will be targeted as follows: the sites of the decommissioned power plants first; then non-power assets; lots with issued option existence notice (OEN); land adjacent to privatized power facilities; and the last ones will be land adjacent to remaining power plant assets (including those under the charge of the independent power producers).

The company said it formulated a strategic plan for the use, management and privatization of its real estate assets – to be done in a framework that will generate the highest financial return so these could reinforce PSALM’s capacity to liquidate its remaining obligations.

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