PSALM to re-assess Mile Long Property

The government, through the Power Sector Assets and Liabilities Management Corporation (PSALM), will have to undertake valuation adjustments on the Mile Long Property, once it is legally taken back into the State’s charge.

This was indicated by Finance Secretary Carlos Dominguez III, who is also the chairman of the PSALM Board, the successor company of National Power Corporation that took over all of its assets and liabilities.

“We have an old valuation, but I think we have to do it again because that was several years ago,” the finance chief said.

PSALM previously indicated that the valuation for the asset had been pegged at R10 billion, but at prevailing market rates, it was surmised that the property’s value could definitely run higher than that.

Primordially though, Dominguez noted that the priority step for government will be to secure a favorable decision from the Courts, so that real estate asset would finally revert to its full control.

And another judicious step to be done, according to Dominguez, would be “to make sure that the tenants there pay us, that’s number one. We have to run after the tenants to pay us.”

Following the asset’s revaluation, Dominguez noted that relevant government agencies – primarily PSALM, would now have to craft plans on the divestment of the property.

The Mile Long Property had been one of the assets being fiercely pursued by the Duterte administration, on the assumption that the State is being shortchanged on the current lease arrangement it is into.

The government has been scouring for various options on how it could pare the humongous debts of PSALM (still running at more than R500 billion including contingent liabilities), and sale of the NPC real properties had been among those identified on its liability management program.

It has been the finance chief ’s wish that under his watch, one of the biggest headaches of the government on the monstrous debt level of PSALM, would be given much needed relief.