AYALA Land Inc.’s (ALI) subsidiary AREIT Inc. filed its application for a Real Estate Investment Trust (Reit) offering to the Securities and Exchange Commission (SEC), following the release of the revised implementing rules and regulations of Republic Act 9856, or the Reit Act of 2009 on Jan. 20, 2020.
The REIT Act, passed by Congress in 2009, allows Reit companies to list and trade their shares of stock in the Philippine Stock Exchange (PSE) as an alternative means to raise funds for property development and expansion initiatives.
The Reit is a new asset class that provides investors with dividend-based income, inflation protection, and portfolio diversification. It broadens investment options for Filipinos, opening the opportunity to own a stake in high-value real estate assets in the country.
ALI’s initiative to pioneer Reits in the Philippines reflects its confidence in the local economy, the property giant said in a stock exchange disclosure Monday, Feb. 10, 2020.
Through this initial capital market transaction, ALI hopes to pave the way for the development of a REIT market in the country, bringing another milestone to the Philippine stock market.
The company seeded AREIT with Grade A office assets located in Makati central business district and is expected to expand its portfolio with new acquisitions in the future. ALI seeks to do an initial public offering of AREIT after receiving the regulatory approvals from the SEC and the PSE. (CSL)