GSIS to sell Port Area property

State-run Government Service Insurance System (GSIS) is selling its Port Area property in Manila for a minimum cash offer of R20 billion.

GSIS President Jesus Clint O. Aranas said the pension fund for government employees will auction off two lots near the Pier 2 Manila North Harbor and Negros Navigation Ferry Terminal in Tondo, Manila for a minimum cash offer of R20 billion.

The Port Area property, the biggest among GSIS assets, consists of two lots with land areas of 672,645 square meters and 109,212 acquire meters, Aranas said.

Although it tops GSIS bigticket assets, Aranas explained they decided to offload the Port Area property as it does not contribute to the pension fund’s operations except for valuation gains.

“We expect to fetch a good price as it is situated in the Manila Bay area where properties have enjoyed a 10 percent to 15 percent appraisal gains over the last five years,” Aranas said.

“The Port of Manila Bay serves as the largest and the premier international shipping gateway to the country which spells economic growth,” he added.

As of November last year, the pension fund’s assets were up 8 percent year-on-year to R1.09 trillion.

Of that amount, 62 percent was invested in financial assets, 24 percent in loans to members, 6 percent in investment instruments, 4 percent in cash and 4 percent in property, equipment and other assets.