Wednesday, November 13, 2019

Request for qualifications issued for a Puerto Rico Industrial Development Co. property manager

By on August 15, 2019

Assets include land, buildings ‘ordinarily intended for industrial use’

SAN JUAN — The Puerto Rico Fiscal Agency and Financial Advisory Authority (Aafaf by its Spanish acronym) published a request for qualifications (RFQ) that seeks to identify qualified parties to manage properties owned by the Puerto Rico Industrial Development Co. (Pridco).

The properties include lands and buildings that are ordinarily intended for industrial use.

AAFAF Executive Director Omar Marrero said the RFQ is a condition established in the June 13 restructuring support agreement (RSA) between his agency, Pridco and “a substantial” number of the latter’s bondholders.

The RSA to restructure Pridco bonds is expected to come about via a “qualifying modification pursuant to Title VI of the Puerto Rico Oversight, Management, and Economic Stability Act (Promesa),” reads the government’s announcing release.

The government explains that that qualifying modification “will allow PRIDCO to maintain ownership of its properties and roughly $35 million that are reserved in cash, which will be used, among other things, to pay down accrued employer contributions to the Employee Retirement System and implement necessary reforms to right size and optimize the economic development arm” of the island’s government.

“This process is key to continue creating initiatives that promote economic development and job creation in the Island. Thus, PRIDCO will secure the funds to comply with future obligations,” Economic Development Secretary Manuel Laboy is quoted as saying in the release.

“At AAFAF, which is the financial advisor of the Government leading this process, and at the [Economic Development & Commerce Department], we are committed to honoring the current contractual relations. Our tenants will continue to receive the service of excellence that sets us apart,” Laboy added.

Marrero explained that the “many tasks associated with the portfolio,” include “collections, communications with tenants, advertisement strategy, record-keeping, managing improvements, monitoring properties for repairs, managing suppliers and detailed reporting of all relevant activities and performance indicators.”

Credentials must be submitted by the Aug. 26, 5 p.m., deadline. To access the RFQ, visit: http://www.aafaf.pr.gov/assets/rfq-asset-manager-pridco.pdf.

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