MANILA, Philippines — The P58 billion estimated proceeds from the potential sale of 24 hectares of land owned by the Food Terminal Inc. are deemed below the asset’s value, according to FTI president and CEO Joseph Rudolph Lo.
Lo told The STAR that the P58-billion valuation for a portion of the agency’s land is underestimated.
He noted that the 74-hectare ARCA South property of property giant Ayala Land Inc., which was previously part of FTI, is selling at P600,000 per square meter.
“Even at half that price, this (remaining 40 hectares of FTI) is already P120 billion,” Lo said, noting that the FTI has a remaining land of about 40 hectares.
“The smaller the property, the higher the price,” he pointed out.
Lo said they do not expect the FTI’s remaining land to be valued the same as ARCA South, but he is hoping that the valuation would be fair and would not shortchange the government.
The STAR broke the story earlier this week that the Government Service Insurance System and Ayala Land are interested in acquiring a portion of FTI in Taguig for P58 billion as the Department of Finance (DOF) ramps up asset disposal to generate revenue.
The FTI is on the list of potential assets for sale even amid complications and resistance to the disposal of the property.
In a disclosure to the Philippine Stock Exchange, Ayala Land confirmed that it has inquired with the DOF about the government’s future plans regarding the remaining 24-hectare FTI property in Taguig.
“However, we wish to clarify that this was an exploratory discussion with no firm agreements or commitments,” ALI senior vice president and chief financial officer Augusto Bengzon said.
In 2012, the government sold a huge chunk of FTI to Ayala Land for P24.3 billion. The property giant then transformed the 74-hectare FTI into an integrated mixed-use development now known as ARCA South.
Lo earlier said the FTI supports the overall development of the country, but maintained that they must retain a portion of the food terminal so they can fulfill their mandate.
He said proceeds of the sale should be allocated to the Department of Agriculture as its annual budget remains insufficient to fulfill the vision of President Marcos. Lo said the FTI could still generate proceeds that the DA needs to support local farmers if it fulfills its mandate.
“If it comes to sacrificing FTI for the DA, then I fully support the direction,” Lo said.
FTI has no more food terminals in the area, with its only source of income coming from its leasing activity, which the DOF said is not part of FTI’s mandate.
The DA is pushing for the revival of FTI, specifically for cold storage and food hubs to address overproduction and minimize post-harvest losses of various farm products.
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