GSIS sets auction of 41 small properties

MANILA, Philippines — State-run Government Service Insurance System (GSIS) plans to auction off next month a total of 41 properties with a cumulative minimum bid price of P19.8 million.

In an advisory posted in its website, GSIS said it is set to hold a public auction for 39 house and lots in Bulacan as well as a 241 square meter property in Laguna and a 120-sqm lot in Rizal.

The auction for the properties will be held on Feb. 12 at the GSIS main office.

According to  GSIS, the disposal of the properties will be on an “as-is, where is” basis. As such, the agency is enjoining all interested buyers to personally inspect the properties for sale.

The state fund is also strictly implementing a “one bidder, one specific property” policy, which means that a bidder cannot submit two or more bids for one property.

Bidders may submit one bid each to as many properties they want to acquire as long as they post a bidder’s deposit for each property. The deposit is equivalent to 10 percent of their bid offer, and should be in the form of a manager’s check payable to the GSIS.

Interested bidders planning to purchase the GSIS properties through an external financing institution should first secure a certification from accredited banks that they are qualified to avail of a loan.

The existing tenants or occupants, or their duly authorized representatives have the right to match the offer of the declared highest bidder provided that they participate in the actual bidding.

A notice of approval of sale (NOAS) will be issued to the highest bidder on the day of the auction.

In case the bid is in cash, the 90 percent balance of the bid amount should be paid either in cash or manager’s check within 30 days from the receipt of NOAS.

But if the bid is made through an external financing institution, the equity should be paid in cash within 30 days from the receipt of a letter of guarantee by the GSIS.

The equity is the amount corresponding to the difference between the guarantee and the offered bid amount.

 In case the highest winning bidder fails to comply with the requirements, the GSIS may write the second higher  property.

GSIS president and general manager Jesus Clint Aranas earlier said the state fund was planning to optimize its real estate assets to increase its revenues.

In 2017, the GSIS reported a net income of P94.7 billion, 69 percent higher than the previous year driven by its income from financial assets.

Total assets also rose nine percent to P1.1 trillion as of the end of 2017.