Philippine National Bank said over the weekend it successfully bid out a foreclosed 3.2-hectare property at Manila Harbour Centre in Tondo, Manila.
PNB said listed port operator International Container Terminal Services Inc. won the bidding when it offered P3.68 billion, above the minimum bid price of P3.2 billion.
The property is classified under real and other properties acquiredor 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,” said PNB president and chief executive Jose Arnulfo “Wick” Veloso.
“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.
The bank brought PWC in to ensure an independent, transparent and competitive bidding that would be beneficial to PNB.
Supporting PWC in the transaction were its member-firm in the Philippines, Isla Lipana & Co. for bid administration and Cabrera & Company for legal support.
The property is a 32,000-square-meter industrial lot and building within the Manila Harbour Centre Industrial zone in Tondo, Manila with a minimum bid price of P3.2 billion or P100,000 per square meter.
A public sealed bidding was held on April 19, 2022. The public bidding was open to individuals, sole proprietorships, partnerships or corporations authorized by law to acquire properties in the Philippines.
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 and the foreclosed eight-hectare property at the corner of Buendia Avenue and Paseo de Roxas in Makati City in 2021.
The bank reported about 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 the bank’s income statement in 2021, tstrengthening its financial position as the transaction generated P10 billion in additional capital, after the effects of the property dividends.
PNB’s profit soared to P31.7 billion at end-2021, or 12 times higher than the P2.6-billion profit it booked in 2020, as a property-for-share swap boosted the bank’s bottom line.