Star City Property Eyed for Sale; P15B in Revenues Expected for Government — DOF

The government is considering the sale of its property in Pasay City, currently home to the Star City amusement park, as part of the Marcos administration’s strategy to increase non-tax revenues through state asset disposal.

“It’s in the process,” confirmed Department of Finance (DOF) Undersecretary for Privatization and Partnerships Catherine Fong to GMA News Online. Fong explained the motivation behind the move: “We need to find non-tax revenues… The rent is low… We would rather dispose of it.”

Finance Secretary Ralph Recto had previously announced the goal to double non-tax collections to P400 billion this year, emphasizing the administration’s decision against imposing new taxes during its remaining term.

Currently, the government earns about P1 million monthly from leasing the Star City property, situated within the Cultural Center of the Philippines (CCP) complex near Roxas Boulevard. The potential sale of this property, which spans over three hectares, is expected to generate more than P15 billion in revenues.

The DOF plans to conduct an open auction or bidding for the property sale “ideally this year,” according to Fong. However, the department is still seeking a replacement property due to the Star City land being tied to Sukuk bonds, a form of Shariah-compliant financial instrument.

“It’s tied to the Sukuk bonds, so we need to find a replacement asset before we can sell it,” Fong stated.

In November of last year, the government successfully raised $1 billion through the sale of US dollar-denominated Sukuk bonds. Sukuk bonds comply with Islamic laws by linking financial returns to tangible assets or properties, instead of traditional interest.

Star City, established in 1991 as an extension of the annual Toys and Gift Fair by the Philippine Center for International Trade and Exhibit (PhilCite), is situated on a 34,346 square-meter lot in Pasay City. The amusement park is operated by Star Parks Corp., owned by the Elizalde family. The lot is leased to Elizalde-led Philippine International Corp. (formerly PhilCite) under an agreement set to expire in 2026.