ICTSI pays P3.68-B PNB Tondo property in cash (Sabong News)
Author
Lee C. Chipongian
Date
APRIL 23 2022
Philippine National Bank (PNB) announced on Saturday, April 23, that it has successfully bid out its foreclosed property in Manila Harbor Centre for P3.68 billion to port operator International Container Terminal Services Inc. (ICTSI), which already paid the Lucio Tan-owned bank in cash.
The three-hectare North Harbor property in Tondo, Manila is an acquired property of PNB and among its real and other properties acquired (ROPA) that it is disposing this year. ICTSI’s purchase price was higher than the indicative bid price of P3.2 billion.
According to PNB President and CEO Jose Arnulfo “Wick” Veloso, the bank was “able to successfully complete the sale of this ROPA through a public sealed bidding process” with help from PricewaterhouseCoopers (PWC).
He said ICTSI paid the P3.68 billion in cold cash. “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,” said Veloso.
PNB in a statement said the presence of PWC during the bid ensures “an independent, transparent, and competitive bidding”. With PWC were Isla Lipana & Co. for the bid administration, and Cabrera & Company for legal support.
A public sealed bidding was held last April 19. The public bidding was open to individuals, sole proprietorships, partnerships or corporations authorized by law to acquire properties in the Philippines.
According to PNB President and CEO Jose Arnulfo “Wick” Veloso, the bank was “able to successfully complete the sale of this ROPA through a public sealed bidding process” with help from PricewaterhouseCoopers (PWC).
He said ICTSI paid the P3.68 billion in cash. “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,” said Veloso.
PNB in a statement said the presence of PWC during the bid ensures “an independent, transparent, and competitive bidding.” With PWC were Isla Lipana & Co. for the bid administration, and Cabrera & Company for legal support.
A public sealed bidding was held last April 19. The public bidding was open to individuals, sole proprietorships, partnerships or corporations authorized by law to acquire properties in the Philippines.
In 2021, PNB completed a property-for-share swap for a 10-hectare PNB Financial Center along Macapagal Boulevard in Pasay City, as well as for the PNB Makati Center in the Ayala central business district and the foreclosed eight-hectare property at the corner of Buendia Avenue and Paseo de Roxas in Makati City.
PNB reported the property-for-share swap in the amount of P33.4 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.
“Specifically, the change was reflected in the bank’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,” said PNB.
Last year, PNB posted a P31.7 billion net income which was 12 times higher than the P2.6-billion profit booked in 2020.
PNB announced in 2020 that it intends to sell up to P80 billion worth of its low-earning property assets.
