PSALM entices bidders for Paco-Manila property

Published August 4, 2021, 10:50 AM

by Myrna M. Velasco

In line with its continuing asset-divestments, state-run Power Sector Assets and Liabilities Management Corporation (PSALM) is trying to court prospective bidders for its Paco-Manila property that is being lined up for ‘negotiated sale’ arrangement.

The real estate asset had been prescribed with a minimum offer price (MOP) of P527.087 million, and that is the lowest scale of selling price approved by the PSALM Board.

In a tender notice to interested parties, PSALM stipulated that “financial offers lower than the current MOP will be rejected outright.”

The government-owned firm added “those who were previously disqualified from participating in other bidding or other negotiated sale activities of PSALM by reason of fraudulent acts, or those who committed fraud or breach in the provisions of any agreement with PSALM are also disqualified to participate in this negotiated sale process.”

On the submission of bids, the deadline was slated by the asset-seller firm to be on August 31 this year; at 12:00 noon at the PSALM office at the Vertis North Corporate Center in Quezon City.

The pre-negotiation conference for this property sale has been scheduled on August 10 (Tuesday next week) at 1:00pm and will be carried out via video conferencing platform.

In that event, the prospective buyers will be given the chance to raise their respective questions relating to the asset and on the propounded negotiated deal for its divestment.

As specified, the Paco-Manila property, which is sited at Isla de Provisor in Paco, Manila, comprises of eight (8) lots with an approximate land area of 20,975 square meters.

PSALM noted that the property is “situated in a prime location” – and it is proximate to a major shopping mall, several government institutions, other business establishments as well as colleges and universities.

The state-run firm has been stepping up its sale of disposable properties of National Power Corporation (NPC) — because that is part of its privatization mandate, so it can raise more cash to settle the stranded financial liabilities of its precursor-company NPC.

PSALM’s corporate life will expire in 2026, and at this stage, it still has more than P350 billion of outstanding financial obligations to settle, hence, it will need to generate more revenues from asset divestments so it can have its hand on additional money that it will need to pay off these liabilities.