State-run Power Sector Assets and Liabilities Management Corporation (PSALM) is courting prospective investors who are interested to join the second round of auction it will be undertaking for a prime real estate asset in Pampanga.

The property, which is sited in Barangay Lagundi at the town of Mexico, spans 50,447 square meters and it consists of one lot – primarily classified as Lot. No. 552 by the Cadastral map of Mexico.

PSALM assured interested bidders that the property it is selling has a ‘clean title’, hence, it will not cause any ownership dispute concerns to whoever would be the buyer.

According to PSALM, the minimum bid price approved for the property by the company’s board of directors had been pegged at P741.327 million; and that shall serve as the cap of the price offer that the asset-seller firm can qualify during the tendering process.

“The property is the former site of the transshipment warehouse facility of the National Power Corporation’s North Luzon generation and transmission projects at the time of its operations,” the asset-seller firm specified.

In a notice to bid issued by PSALM, it decreed that the deadline for the submission of bids for the property shall be on October 20 this year at 2:00pm; and the opening of bids will immediately follow after that.

‘The bidding will be conducted at the PSALM’s office at the 24th floor Vertis North Corporate Center 1, North Avenue, Quezon City, but the proceedings will also be shown by virtual means for those who cannot attend in person,” the state-run company emphasized.

PSALM conveyed that “an interested party is required to pay a non-refundable participation fee in the amount of P100,000.00 until two (2) business days before the bid submission deadline,” adding that a pre-bid conference is slated on September 15 at 2:00pm “to provide an opportunity for prospective bidders to raise questions pertinent to the terms of the sale.”

To further entice prospective takers, PSALM indicated that “the property is appropriate for commercial land development” and it is in a highly accessible location to the North Luzon Expressway, Subic-Clark-Tarlac Expressway, MacArthur Highway and Jose Abad Santos Avenue.

The government-owned company further said the Mexico real estate asset “is in close proximity to community centers like schools, hospitals and major shopping malls.”

PSALM has been accelerating the sale of various real estate assets so it can have wider base of proceeds that it can in turn use to settle maturing financial obligations.

The disposal of the real estate assets of its precursor company NPC had been part of the mandate bestowed upon PSALM under the Electric Power Industry Reform Act (EPIRA), or the law that restructured the country’s electric power sector.

The company’s corporate life will last until year 2026, hence, it is speeding up the sale of disposable assets so it can wipe out power sector debts before its operation will fold up.