Stock News 2012: Ayala buys FTI for P24.3B

Map of Metro Manila (Photo credit: Wikipedia)

After lying idle for years,  the sprawling Food Terminal Inc. (FTI )complex in Taguig City will soon be developed into a commercial business district.

Executives of Ayala Land Inc. (ALI) led by  chairman Fernando Zobel de Ayala on Monday agreed to purchase the 74-hectare FTI property for P24.3 billion from the government in a signing ceremony witnessed by President Aquino in Malacañang.

ALI plans to develop the FTI complex into an integrated mixed-use and business district that will feature retail, dining and entertainment.

“We hope the redevelopment of the FTI complex will lead to a surge in economic activity and increase employment in the city of Taguig and the surrounding metropolitan area,” said Karen Singson, chief privatization officer of the Privatization and Management Office (PMO).

Proceeds of the sale will be used to finance the Department of Agriculture’s agriculture and fisheries modernization program and projects of the Department of Agrarian Reform, Singson said.

“The development of what will be the next premiere CBD of Metro Manila is another milestone that we are very pleased to be embarking on,” said ALI president and CEO Antonino Aquino who signed for the company.

The PMO had set a floor price of P10.2 billion for the property. At least seven parties had expressed interest in one of the biggest industrial complexes in Metro Manila.

ALI bested the bids of Robinsons Land (P14.7 billion) and Empire East (P11 billion), the Presidential News Desk said.

Located along the South Luzon Expressway, FTI is envisioned to become a key pivotal convergence point and southern gateway to Metro Manila.

The new ALI development will showcase the largest “intermodal transport system” linking various types of transit options to facilitate commuting from various points. The planned Integrated Transport System project of the Department of Transportation and Communication will be set up adjacent to the FTI property and will be linked to the Philippine National Railway station in the area.

http://business.inquirer.net/92698/ayala-buys-fti-for-p24-3b

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Stock News 2012: 7 property giants eye P10.2-billion FTI property

Department of Public Works and Highways in Manila, Philippines (Photo credit: Wikipedia)
Seven of the country’s biggest business groups are vying for the government’s Food Terminal Inc. (FTI) property, which is up for bidding next month for a minimum price of P10.2 billion, the Department of Finance said yesterday.

The potential bidders are the Gokongwei group’s Robinson’s Land Corp., Andrew Tan’s Empire East Land, the Ayala group’s Ayala Land Inc., the Lopezes’ Rockwell Land Corp., the Sy family’s SM Land Inc., Andrew Gotianun’s Filinvest Land Inc. and Century Properties Group Inc., owned by the family of Jose Antonio.

The seven property firms obtained the necessary documents and are expected to participate in the public bidding set on Aug. 8 for 74 hectares of the 103-hectare FTI Complex.

The government tried but failed to bid out the FTI property in the past, with the Macapagal-Arroyo administration even lowering the floor price to P7 to P8 billion. One valuation pegged the value of the property at P12 billion.

The last attempt to auction FTI was in 2009 when private companies snubbed a public bidding for the property.

In an interview, Finance Secretary Cesar Purisima said the P10.2-billion floor price, though lower than the P12-billion valuation, is based on the current market price.

“There is no plan to drop the valuation. We believe in markets,” Purisima said.

The remaining 29 hectares of the complex will be used for other various purposes including a five-hectare integrated bus terminal, which is being constructed by the Department of Transportation and Communication (DOTC) and the Department of Public Works and Highways (DPWH).

PMO chief Karen Singson said that following the failed bidding of the 103-hectare FTI complex in October 2009, the government has designing a place to optimize the use of the property.

“PMO continues to coordinate with other government agencies to ensure that the privatization of FTI complements the broad array of infrastructure building and agriculture initiatives of the government,” Singson said.

Proceeds of the sale will go to the Department of Agrarian Reform for the Comprehensive Agrarian Reform Program and to the Department of Agriculture.

The 103-hectare FTI agro-industrial complex is one the largest industrial complexes in Metro Manila and is currently home to more than 300 companies.

It provides industrial and commercial lots for medium-to-long term leases, and industrial buildings with standard-sized stalls for office, warehouse or small-scale processing operations.

http://www.philstar.com/Article.aspx?articleId=830213&publicationSubCategoryId=66

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Stock News 2012: After 3 failed bids, gov't to try and sell FTI anew

Official seal of City of Taguig (Photo credit: Wikipedia)
After three years of delay and three failed biddings, the government will attempt to sell again the sprawling Food Terminal Inc. (FTI) property in Taguig City, the Privatization Management Office (PMO) said yesterday.

PMO Chief Karen Singson said the government intends to publish the invitation to bid by next week as she urged interested parties to place their bets.

“Everyone is invited to bid for the parcel. This is a straightforward property sale. Other parameters such as the minimum target selling price and prequalification requirements will be detailed at the bidding notice to be published on national newspapers,” she said.

The 103-hectare FTI agro-industrial complex is one the largest industrial complexes in Metro Manila and is currently home to more than 300 companies.

It provides industrial and commercial lots for medium-to-long term leases, and industrial buildings with standard-sized stalls for office, warehouse or small-scale processing operations.

Of the 103-hectare property, the government will bid out 74 hectares, Singson said.

The government will retain the rest of the property for various purposes.

“The government will study its options for the unprivatized special economic zone area located within the FTI complex, including the utilization of the same by the Department of Agriculture for food-sufficiency projects,” Singson said.

According to the PMO, part of the proceeds will go the Department of Agrarian Reform for the Comprehensive Agrarian Reform Program and to the Department of Agriculture.

With the sale, the government expects economic activities in Taguig City and nearby areas to flourish as employment increases and transport linkages in the complex improves.

The Aquino administration hopes to sell the property at a price higher than the P7 to P9-billion tab set by the previous government for the agro-industrial estate.

Robinson’s Land has expressed interest in the property and so has the Ayala Group and Henry Sy’s SM Development Corp.

http://www.philstar.com/Article.aspx?articleId=818600&publicationSubCategoryId=

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