MANILA, Philippines (UPDATE) - Ayala Land Inc. made the winning bid for the government's Food Terminal Inc. (FTI) property in Taguig City, offering P24.33 billion.
Ayala Land beat rival property firms Gokongwei-led Robinsons Land and Andrew Tan's Empire East. Ayala's bid was more than double the bids submitted by the 2 other companies, and exceeded the property's P10.2 billion floor price.
Gokongwei-led Robinsons Land made a P14.67 billion bid, while Andrew Tan's Empire East bid P11.2 billion.
Karen G. Singson, Privatization and Management Office (PMO) executive director said that Ayala Land's bid will still be subject to post qualification requirements.
"Post qualification process is just authentication and validation of documents. We're very happy with the result. The upfront cash of P19.465 billion is something the government can take comfort with," she said.
The upfront cash should be paid within 60 working days, while the remaining balance should be settled a year from the closing date.
"We don't really care with the nominal amount, we're more concerned with the net present value," Singson said. Ayala Land's net present value offer was P23.889 billion.
Proceeds from the sale of the FTI complex will go to Department of Agrarian Reform's Comprehensive Agrarian Reform Program and the Department of Agriculture.
Seven property firms were pre-qualified to make a bid for the FTI property, but only 3 submitted bids.
Rockwell Land Corporation, Century Properties Group Inc., Filinvest Land Inc. and SM Land did not submit offers.
In a disclosure to the stock exchange on Tuesday morning, Filinvest Land said it did not participate in the FTI property bidding, since the property did not fit with its land banking strategy.
"The due diligence on the property, the existing leases, the possible development timeframe, as well as the minimum bid price and the payment schedule, FLI felt that acquiring the FTI property under the current terms does not conform to its land banking business model and its return criteria," Filinvest said.
The government has been trying to sell the property for years, but there have been delays and failed biddings.