Finance Secretary Carlos Dominguez III said Thursday the growing roster of Real Estate Investment Trust (REIT) offerings will propel the growth of the Philippines’ property sector beyond the pandemic–and serve as one catalyst for the country’s quick and strong economic recovery.
Dominguez said the REIT has proven to be the ideal tool for raising the billions of pesos required to power property development in the country while at the same time opening attractive and dependable investment opportunities for the average Filipino.
As with the previous REIT offerings, Dominguez said the latest to be listed by Filinvest Land Incorporated in the Philippine Stock Exchange (PSE) amid the COVID-19 pandemic underscores the confidence of investors in the economy’s solid recovery from the impact of the global contagion.
“I wish Filinvest the best and thank its board, officers, and staff for their confidence in the strength of our economy. This REIT offering will be among the catalysts for our quick and strong economic recovery,” said Dominguez during the listing ceremony for the Filinvest REIT Corporation (FILREIT) at the PSE.
Dominguez noted that FILREIT’s portfolio of “Grade A” office and commercial properties located in strategic areas and catering primarily to the business process outsourcing (BPO) and information technology (IT) sectors will “surely provide attractive dividend yields for investors.”
Filinvest has also acquired a well-earned reputation for sustainable and green buildings, which should inspire other developers and set the standard for eco-friendly designs that will help achieve the country’s climate ambition of reducing greenhouse gas emissions, said Dominguez, who is chairperson-designate of the Climate Change Commission (CCC).
“With this REIT offering, I encourage Filinvest to further expand its portfolio of sustainable property developments, especially outside the Metro Manila area,” Dominguez said.
Dominguez said he is “fairly certain” that the country has gone through the worst part of the COVID-19 induced crisis and is well on its way to recovery, as evidenced by the economy’s second-quarter growth of 11.8 percent, which is the best quarterly performance in more than 30 years.
“Despite the recent lockdown to contain the Delta variant, prospects for a strong economic rebound in 2021 remain promising. Our vaccination program, which is the most potent weapon we have against this unseen enemy, is proceeding at pace. This is a step closer to achieving herd immunity in the country,” he said.
FILREIT is the third REIT offering in the country after Ayala Land Inc. (ALI) and DoubleDragon Properties Corp. (DDPC) earlier listed their respective REITs in the Philippine Stock Exchange (PSE) amid the pandemic.
Dominguez had strongly pushed the implementation of Republic Act (RA) No. 9856 or the REIT Law since he assumed the finance portfolio in 2016.
When the REIT Law was passed in 2009, no company found its terms attractive, owing to what property players have listed as obstacles for the REIT to flourish in this country–friction costs, minimum public ownership requirements, and taxes.
It was the Duterte administration that set the stage for REITs to flourish in the country after 11 years of deadlock, when it successfully issued an amended set of implementing rules and regulations (IRR) for RA 9856 last year.
Under the amended IRR, the Duterte administration ensured that all shareholder proceeds from REIT offerings will be retained within the domestic economy and used to drive the country’s growth.
The REIT law, with its amended IRR, now allows both small and large investors to own real estate assets, presenting an alternative and secure investment instrument for middle-income families and overseas Filipino workers (OFWs).
-oOo-
