PSALM may sell real estate assets for financial obligations

PSALM may sell real estate assets for financial obligations

The Power Sector Assets and Liabilities Management Corp. (PSALM) is looking to sell its real estate assets to lessen its financial obligations as it waits for the go signal on the sale of its government-owned power plants.

OIC Lourdes Alzona said that their agency is reviewing its remaining real estate assets while waiting for the direction from the Department of Energy (DOE) on the Malaya Power Plant.

“The remaining asset in our schedule this year is Malaya plant,” she said. “While awaiting the needed direction, the focus is profiling our real estate assets in addition to liability management to service outstanding financial obligations.”

As long as it’s feasible, PSALM would take on measures on its properties. “We are coordinating with PEZA (Philippine Economic Zone Authority) to maximize value of these assets,” Alzona said.

PSALM has real estate assets with an aggregate land area of around 100 million square meters (sqm), with 6,160 lots located across the country, data from its website said.

Alzona said that PSALM has P5 billion worth of real estate that may be sold, but still needs to be identified which could be privatized since these involve around 10,000 hectares of properties.

As of June 2017, PSALM has remaining obligations amounting to P490 billion.

Created under the Electric Power Industry Reform Act (EPIRA) of 2001, is tasked to privatize government-owned power assets.

They are also tasked to take ownership and implement sales or privatization programs for real estate and all other disposable assets.

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