GSIS, Ayala eye FTI property

DA wants P58-B sale proceeds to shore up budget

- LOUISE MAUREEN SIMEON and JASPER EMMANUEL ARCALAS

The Government Service Insurance System (GSIS) and property giant Ayala Land Inc. are interested in acquiring the Food Terminal Inc. (FTI) in Taguig for P58 billion as the Department of Finance (DOF) ramps up asset disposal to generate revenue.

In an interview with The STAR, Finance Undersecretary Catherine Fong said the DOF continues to dispose of state assets in order to hit the P100-billion privatization target for 2025.

The FTI is on the list of potential assets for sale even amid complications and resistance to the disposal of the property. The government is eyeing to sell about 24 hectares of FTI, valued at P58 billion.

"GSIS wants to buy it. GSIS is liquid and they want it for investments. They know that the value will increase further once the expressway (Skyway Stage 4) is built," Fong said.

"Ayala also wants to buy it since they are already there," she 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.

GSIS and Ayala Land did not immediately respond when sought for comment.

Fong explained that there has been a long-standing policy since the administration of the late president Benigno Aquino III that FTI is supposed to be sold.