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June 23, 2024

PNB sells Manila North Harbour property to Razon’s ICTSI for P3.68B

Philippine National Bank led by bankero Wick Veloso is raising P3.68 billion from the sale of its Manila North Harbour Centre property to port giant International Container Terminals Services Inc. of billionaire Ricky Razon.

The property disposed through a competitive bidding last April 19 is classified under Real and Other Properties Acquired (ROPA) or more commonly known as acquired properties by the Lucio Tan-led bank.

“We were able to successfully complete the sale of this ROPA through a public sealed bidding process engaging the help of PricewaterhouseCoopers (PWC). The winning bid is P3.68 billion in cash,” the bankero said.

PNB brought PWC in to ensure an independent, transparent, and competitive bidding that would be beneficial to PNB. Supporting PWC in this 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.

“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 added.

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.

The listed bank reported approximately 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.