More idle government assets valued at roughly ₱30 billion are expected to be disposed of through privatization as the government successfully completed the ₱1-billion sale of one floor of Atrium of Makati, bringing first-half revenues close to the full-year figure for 2025.

On Thursday, July 16, the Marcos Jr. administration—through the Department of Finance (DOF)-attached Privatization and Management Office (PMO)—sold the entire fifth floor of Atrium to Makati City-based Sanpiro Realty Development Corp. The sale covers 24 condominium units and 21 parking slots.

This first transaction with Sanpiro pushed privatization revenue to ₱1.9 billion in the first half of 2026, nearly matching the ₱2-billion haul for the whole of 2025.

Chief Privatization Officer (CPO) Michael Peter A. Alejandro told reporters on the sidelines of the signing of the deed of sale that the asset in question was last used in 2019 and has been idle for six years.

Before the Covid-19 pandemic, the Bureau of Internal Revenue (BIR)’s regional district offices occupied the units. “It had been used before, but the building now requires retrofitting, which is why the units are no longer being utilized,” Alejandro said.

It also bears noting that the PMO has already exceeded its ₱753-million collection target for 2026 by nearly 150 percent in just the first two quarters. This is an agency-specific target set by the Department of Budget and Management (DBM), Alejandro said.

According to Alejandro, the asset drew strong interest from private firms, allowing the government to sell it for about twice the amount of the initial offers and valuations, which were around ₱400 million.

Sanpiro president James Roy N. Villareal said the firm already has a “foothold” because it owns several units and a certain percentage of Atrium. “So naturally, when the government put the asset up for sale, it became an opportunity for us and aligned with our long-term strategy to consolidate ownership,” he said.

The transaction went through a lengthy process.

“It went through several rounds of back-and-forth discussions, and with the master deed restrictions held by Sanpiro, the company was able to exercise its right to purchase the units for ₱1 billion,” Alejandro said, adding that the transaction would boost state revenues.

“This will bolster the government’s privatization revenues. We have a very bold target of ₱100 billion—it’s quite ambitious,” Alejandro admitted. He, however, noted that the latest sale “will go a long way toward helping fund roads, classrooms, and other projects across the country.”

Alejandro said the Atrium sale reflects the government’s sustained efforts “to bring idle government assets to the market through well-planned and competitive transactions.” Deploying such a strategy allows the PMO to maximize the value of real estate owned by the state.

“We will build on this momentum as we pursue other properties for disposition in the pipeline,” Alejandro assured.

DOF Secretary and Privatization Council (PrC) Chair Frederick D. Go said in a statement that the sale underscores the government’s commitment to turning idle assets into “revenues that strengthen our capacity to fund priority programs and support long-term national development.”

After completing Atrium’s sale, the government is now eyeing the faster sale of the Mile Long complex also in Makati, a portion of state-run Food Terminal Inc.’s (FTI) property in Taguig City, and its shares in South Luzon Expressway (SLEX).

Alejandro told reporters that, based on zonal values, Mile Long is currently valued at approximately ₱10 billion, while FTI is valued at around ₱20 billion.

These big-ticket assets are slated for disposal in the second half of 2026, with Mile Long targeted for the third quarter, and FTI and SLEX shares for the fourth quarter.

The government currently holds a 20-percent stake in SMC SLEX Inc., the toll road operator, through state-owned Philippine National Construction Corp. (PNCC). 

Formerly South Luzon Tollway Corp., SMC SLEX operates as a unit of San Miguel Holdings Corp. and is a joint venture (JV) with PNCC.

Alejandro said the government is “still endeavoring to hit the ₱101-billion” target outlined in the medium-term national government fiscal program. Since the Cabinet-level, interagency Development Budget Coordination Committee (DBCC) has already met, he said this figure will be reviewed if the committee has made any adjustments.

Apart from the Atrium sale, recurring payments from the sale of Nonoc Mining and Industrial Corp.’s assets injected ₱600 million into the national coffers in April, marking the highest single-month collection in 11 months since May last year.

Recall that the PrC revised the government’s privatization guidelines to fast-track the disposition of idle government assets while enhancing transparency. Under the new guidelines, unsolicited offers are now permitted, and there is also room for alternative schemes for asset disposition.

Following the updated guidelines, Alejandro revealed that there has been a surge in interest from private investors. “We’ve been receiving a lot of unsolicited offers from the private sector, which is encouraging. There’s definitely interest,” he said.

To accelerate the sale of other assets, the DOF’s privatization partnerships group (PPG) vowed to continue adopting “transparent, competitive, and efficient processes.”

Bureau of the Treasury (BTr) data showed that the Marcos Jr. administration saw a sharp contraction in privatization earnings in 2025. Total revenue on this front dropped to ₱2 billion last year from ₱3.3 billion in 2024.

Jonathan Ravelas, senior adviser for Reyes Tacandong & Co., said that while the multibillion-peso goal is not impossible to achieve, it “remains ambitious,” echoing Alejandro’s view. Ravelas said the second half of the year will clearly define this ambition—“whether it becomes a fiscal success story or simply a stretch goal.”