More firms creating REIT

MANILA, Philippines — Three more real estate companies have expressed interest in forming and listing their own real estate investment trust (REITs) in the stock market, according to Securities and Exchange chairperson Emilio Aquino.

While Aquino did not identify the companies, DoubleDragon, owned by Edgar “Injap” Sia II, has already bared plans to list its REIT.

Another company watching the REIT landscape is Villar-owned Vista Land.

DoubleDragon’s DD Meridian Park REIT or DDMP has an estimated value of P50.9 billion and the company expects to generate P17 billion  from the planned REIT listing.

DoubleDragon’s first tranche of REIT assets will comprise of leasable properties of DD Meridian Park consisting of seven buildings with a total area of 248,349 square meters.

This represents an offer of 33.33 percent of the selected REIT assets, which is the minimum public float based on the revised REIT listing rules.

Proceeds from the listing will be reinvested in the country, including the construction of about 450,000 square meters of building floor area which will further significantly increase the leasable portfolio and recurring rental revenues of the company in the near term.

DoubleDragon will infuse two more buildings in the DDMP REIT after two to three years after the initial seven buildings that will comprise the first tranche.

The company is targeting to list in October.

The REIT Act allows REIT companies to list and trade its shares of stock in 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 law, investors have access to dividend-based income, inflation protection, and portfolio diversification and broadens investment options for Filipinos.

The Ayala Group, was the first to list its REIT through AREIT Inc., which listed last August 13.

“Hopefully, more REIT companies will soon join AREIT as part of the newest asset class on the Philippine Stock Exchange,” SEC’s Aquino said.