Ortigas Land sets sights on REIT, IPO

MANILA, Philippines — Real estate developer Ortigas Land is studying the possibility of participating in the country’s real estate investment trust landscape or embarking on an initial public offering.

In a recent briefing, Ortigas Land president and chief executive officer Jaime Ysmael said the company is studying the two options. 

“REITs and IPOs are options available to us and we are studying the possibilities, but it will still depend on a lot of things,” Ysmael said. 

Ysmael said the focus is to grow the company and continue with its expansion.

In 2014, the SM Group and Ayala Land Inc. made their entry to the company by partnering with the two factions in the Ortigas family, the family behind Ortigas & Co.

Many companies have expressed interest in listing in the stock market under the REIT framework now that the new implementing regulations of the REIT Act of 2009 are finally out. 

The Philippine Stock Exchange (PSE) said that  listed property companies have already expressed interest in listing their respective REITs. Ayala Land, through AREIT Inc., aims to become the first REIT company to list. 

The REIT Act allows REIT companies to list and trade its shares of stock in the stock market as an alternative means to raise funds for property development and expansion initiatives.

Companies that own and operate income-generating real estate assets are considered REIT companies. These companies include offices, apartment buildings, hotels, warehouses, shopping centers and highways.

With the REIT Law, investors have access to dividend-based income, inflation protection, and portfolio diversification and broadens investment options for Filipinos.

“Whether it is REIT or IPO, it would allow us to fund our aggressive expansion,” Ysmael said.

Ortigas Land is a real estate development in the Philippines with over eight decades of experience. It is the developer behind some of Metro Manila’s best-known mixed-use projects such as Greenhills Center, Capitol Commons, Ortigas East, and Circulo Verde. 

It recently launched its latest project, Residences at The Galleon, touted as the most expensive residential tower in the business district. 

The Galleon is a 51-floor residential tower, which has a sales value of P16 billion and will rise along ADB Avenue and strategically located at the heart of Ortigas Center.