MANILA, Philippines — Philippine National Bank (PNB) of tobacco and airline magnate Lucio Tan is raising P3.68 billion from the sale of its foreclosed Manila North Harbour property to Razon-led International Container Terminal Services Inc. (ICTSI).
The port giant controlled by billionaire Enrique Razon edged out other companies in a competitive bidding held last April 19.
The STAR reported early this month that PNB was looking at raising P5.8 billion from the sale of two real estate properties strategically located in the National Capital Region (NCR).
It was selling a 32,000-square meter commercial lot and building within the Manila Harbor Centre industrial zone in Tondo, Manila with a minimum bid price of P3.2 billion or P100,000 per square meter (sqm).
PNB was also disposing two lots, a 35,255-sqm and another 180-sqm, consisting of a commercial lot and building along Alabang-Zapote Road in Pamplona, Las Piñas City for P2.6 billion or P73,373 per sqm.
PNB president and CEO Jose Arnulfo “Wick” Veloso said the properties are classified under Real and Other Properties Acquired (ROPA) or more commonly known as acquired properties by the bank.
“We were able to successfully complete the sale of this ROPA through a public sealed bidding process engaging the help of PricewaterhouseCoopers. The winning bid is P3.68 billion in cash,” Veloso said.
The Tan-led lender tapped PWC to ensure an independent, transparent, and competitive bidding that would be beneficial to PNB.
Isla Lipana & Co. and Cabrera & Co. also helped the in the transaction through bid administration and legal support, respectively.
“This transaction will monetize another low-revenue-generating foreclosed property, giving the bank additional financial resources that it can use to pursue its strategy and capture opportunities brought about by the recovering economy,” Veloso said.
No update was given on the other property in Las Piñas City worth at least P2.6 billion.
Last year, PNB executed a property-for-share swap involving the 10-hectare PNB Financial Center along Macapagal Boulevard in Pasay City, the PNB Makati Center in the Ayala central business district, as well as the foreclosed eight-hectare property at the corner of Buendia Avenue and Paseo de Roxas in Makati City.
As a result, the bank booked P34 billion in its books representing the difference between the fair value of P46.68 billion and the book value of P12.6 billion of the properties exchanged for shares of PNB Holdings Corp.
The change was reflected in PNB’s income statement in 2021, thereby strengthening its financial position as the transaction generated P10 billion additional capital, after the effects of the property dividends.
Boosted by the property-for-share swap, PNB’s net income soared to P31.7 billion in 2021, 12 times the P2.6 billion profit booked the previous year.
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The article was originally published in PhilStar Global and written by Lawrence Agcaoili.
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