PSALM receives PHP5.176 billion for first tranche of the PHP5.192 billion purchase price of Sucat Properties

25 Jan 2024

On 29 December 2023, the Department of Transportation (DOTr) paid Power Sector Assets and Liabilities Management Corporation (PSALM) the amount of PHP5,176,063,000.00 representing the first tranche of the purchase price for the Sucat Properties equivalent to 100% of the value of the titled land.

The sale of the Sucat Properties was facilitated through a “Transfer to Another Government Agency” mode of sale as allowed under PSALM’s approved modes of privatization on real estate assets.

The titled properties, lots 5-B-1 and 6-B-2 cover a total land area of 110,129 square meters or a total of 11 hectares. Tranche 2 of the sale covers the various land improvements and structure such as a guard house, perimeter fence and roadways.

The Closing Date for the sale of the properties will commence when DOTr has fully paid the purchase price for tranches 1 and 2. Upon Closing Date, PSALM will turn over to DOTr the physical possession of the Sucat Properties as well as the corresponding original owner’s Duplicate Copies of the TCTs and Tax Declarations.

This is a culmination of almost three years of coordination beginning January 2021 when DOTr formally confirmed its interest to acquire the Sucat Properties to be used for its North-South Commuter Railway (NSCR) Project and PNR South Long-Haul Projects. The NSCR Project is a 147km mass transportation railway system linking Region 3, the National Capital Region (NCR) and Region IV-A, while the SLH is a 639km railway system linking the NCR, Regions IV-A and Region V.

PSALM will use the proceeds from the sale of the Sucat Properties to pay for the remaining stranded contract costs and stranded debts under the EPIRA.

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