The Puerto Rico Fiscal Agency and Financial Advisory Authority (AAFAF) published a Request for Qualifications (RFQ) that seeks to identify qualified parties to manage properties owned by the Puerto Rico Industrial Development Company (PRIDCO).
The RFQ is meant to identify one or more qualified parties who manage properties, which include lands and buildings that are ordinarily intended for industrial use.
AAFAF Executive Director Omar J. Marrero explained that the RFQ process is a condition established in the Restructuring Support Agreement (RSA) executed on June 13, 2019, between PRIDCO, AAFAF and a substantial amount of PRIDCO bondholders.
Said RSA seeks a financial restructuring of the PRIDCO Bonds, which is anticipated to be effected through a Qualifying Modification pursuant to Title VI of the Puerto Rico Oversight, Management, and Economic Stability Act (“PROMESA”).
The 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 Government of Puerto Rico.
“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,” stated the Secretary of the Department of Economic Development and Commerce (DEDC), Manuel Laboy Rivera.
“At AAFAF, which is the financial advisor of the Government leading this process, and at the DEDC, we are committed to honoring the current contractual relations. Our tenants will continue to receive the service of excellence that sets us apart,” he added.
Marrero explained that the participants must provide evidence of their expertise as well as proven capacity to manage the many tasks associated with the portfolio, which include, among others: 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. This process will be governed by the procedural requirements established by AAFAF.
This initiative promotes new economic development models that will put Puerto Rico back on the path to prosperity.
The RFQ sets 5:00 pm on August 26, 2019 as the deadline for interested parties to submit credentials. To download the RFQ, interested parties must visit: http://www.aafaf.pr.gov/assets/rfq-asset-manager-pridco.pdf.