P115-M worth of properties up for auction

State-run Philippine Deposit Insurance Corp. (PDIC) is set to dispose P115.1 million worth of various properties of padlocked banks.

The PDIC will accept bids via its e-bidding portal on Feb. 28 for some 55 properties as part of its continued effort to dispose of corporate and closed banks’ assets.

Potential buyers have a variety of options for the properties such as for ownership, investment or development.

These include 44 agricultural lots, 23 of which are vacant while four have improvements, as well as 11 mixed residential and agricultural lots, eight of which have improvement and two are vacant.

Lot sizes of the properties are between 305 square meters and 78,917 sqm. Rates start at a minimum disposal price of P36,600 to as much as P20 million.

The properties are located in Aklan, Antique, Batangas, Bohol, Camarines Sur, Cavite, Isabela, La Union, Laguna, Marinduque, Misamis Oriental, Negros Occidental, Pangasinan, Quezon and South Cotabato.

The properties were acquired from banks granted financial assistance by the PDIC pursuant to its mandate under the law.

As the mandated liquidator, the PDIC sells closed bank-owned assets through public biddings and negotiated sales.

Proceeds of such transactions are added to the pool of liquid assets of the banks for distribution to uninsured depositors and other creditors subject to the rules on concurrence and preference of credits.

The disposal of these assets increases the chances of recovery of uninsured depositors and creditors of their trapped funds in the closed banks.

Meanwhile, proceeds from the sale of corporate assets are added to the Deposit Insurance Fund, PDIC’s main fund source for payment of valid deposit insurance claims.

PDIC reminded bidders of their responsibility to determine the actual condition, status, ownership, and other circumstances of the properties they want to acquire.