The Department of Finance (DOF) on Tuesday said the government is planning to privatize the Mile Long property in Makati City by the middle of 2018.
This is part of the Duterte administration’s asset-privatization thrust. According to Finance Secretary Carlos G. Dominguez III, the government is planning to speed up the privatization of assets under the Duterte administration to generate additional funds for the state coffers.
“Mile Long, that is the new asset that we received, which we should be privatizing by the middle of next year,” Dominguez told financial reporters.
Mile Long is a 2.9-hectare property in Makati City formerly controlled by Prieto-owned Sunvar Realty Development Corp.
In August President Duterte announced that revenues generated from the sale of the property will be used to fund the government’s housing projects.
“Of course, there are several ways to do it, and then we have to evaluate. Do we sell it as one chunk or separate chunks…I don’t really know yet what is the optimum for the government,” he added.
As for the value of the property, the finance chief said the government still has no estimates, as it takes a bit of time to study the valuation. Around three valuation studies are to be submitted to the government.
“Two external and one internal valuation,” Finance Undersecretary Grace Karen G. Singson said.
Sunvar followed the ruling of the Regional Trial Court in Makati City to vacate the Mile Long properties in Makati City that is owned by the national government, but has been in the company’s possession for 35 years already.
It leased the undeveloped land of the government 35 years ago upon the understanding that the lease period would expire in 2027. Sunvar added that it paid P16.8 million as advance rentals and expended millions more to build roads, buildings and infrastructure to develop the property, which is why it is so valuable now.