DoF eyes PHP 101 billion from sale of gov’t assets

The government is targeting to sell three big-ticket real estate assets this year, which, along with the proceeds from the privatization of Caliraya‑Botocan‑Kalayaan (CBK) last year, could yield a combined P101 billion in revenues, the Department of Finance (DoF) said.

The Food Terminal, Inc. (FTI), the Mile Long Complex, and the Atrium condominium in Makati City are slated for disposal this year, the Privatization and Management Office (PMO) said in a Viber message on Feb. 2.

The PMO serves as the marketing arm of the government concerning transferred assets.

However, the Privatization Council has not approved minimum prices for these properties, it said.

“Together with the privatization of CBK, the privatization of these three assets and certain shares of stock, the NG (National Government) is targeting privatization nontax revenue of PHP 101 billion,” the PMO said.

This goal is much higher than the PHP 5-billion privatization target for 2025. The PMO has not released data on its full-year 2025 revenues.

According to a document seen by BusinessWorld last year, the FTI property in Taguig City has an estimated value of PHP 40.4 billion.

Meanwhile, the Mile Long Complex in Makati City is worth about PHP 12.26 billion. This is occupied by various tenants with buildings and has other land improvements classified as residential and commercial lots.

Also in Makati, the Atrium property, consisting of 24 condominium units and 21 parking slots, has been valued at about PHP 449 million.

Last year, the government privatized the 733.95-megawatt CBK hydroelectric power complex in Laguna, awarding it to the Thunder Consortium, which offered PHP 36.27 billion. The consortium was made up of Aboitiz Renewables, Inc., Sumitomo Corp., and Electric Power Development Co.

Analysts said the government’s PHP 101-billion privatization target for this year is ambitious due to execution.

The Marcos administration’s nontax revenue target from asset sales this year is “more of an aspirational ceiling than a realistic baseline,” Leonardo A. Lanzona, an economics professor at Ateneo de Manila University, said.

“The government has the right assets and the right intent, but Philippine privatization has a deeply entrenched pattern of ambitious targets followed by dramatic downgrades,” he said in a Messenger chat on Tuesday.

Last year’s PHP 5-billion privatization target was cut from the original PHP 101 billion as the government said it saw “slight delays” in selling properties.

“A more credible near-term expectation might be something in the PHP 30 [billion] to PHP 50-billion range — achievable if one or two of the mega-deals actually close on time — with the full PHP 101 billion being more of a 2026-2027 cumulative story rather than a single-year outcome,” Mr. Lanzona said.

Conflicting policy priorities within the Executive branch have often stalled deals and the lack of a clear directive has put assets in limbo, he added, citing the case of the FTI property. The Agriculture department has said it wants to revive the FTI’s operations, even as the DoF has long pushed for its privatization.

“The optimist in me would say that the target is ambitious but not impossible, though execution risk is high given the Philippines’ track record of delays from valuation disputes, legal challenges, and slow transaction processes,” John Paolo R. Rivera, a senior research fellow at the Philippine Institute for Development Studies, likewise said in a Viber message.

“Achieving it will depend on market timing, investor appetite for large real estate assets, and the government’s ability to run transparent, competitive bidding without governance concerns,” he said. “Key derailment risks include weak market conditions, regulatory or court bottlenecks, and credibility issues that could discourage bidders or depress prices.” — Aubrey Rose A. Inosante