News

Major developers make REIT offerings

By:Arrah Manticajon|July 01, 2019

Key players in real estate in the Philippines are seeing the huge potential of real estate investment trusts (REITs) and have started to list their own offerings.

The Philippine Daily Inquirer reports that last April, Ayala Land Inc. has made public their plans to raise $500 billion by listing their office buildings in the Makati Central Business District as REITs which would then make them available for trading under the Philippine Stock Exchange. To accomplish this, the company has turned One Delarosa Development Property Development Inc. and renamed it to Ayala REIT as its listing vehicle. Ayala REIT is the first REIT company in the country.

According to Ayala Land CEO Bernard Dy, said that the time is right to go to the market with a REIT offering because there is a demand for it. They are also looking into adding third-party assets aside from listing Ayala properties.

Doubledragon Properties Corp. has likewise made REIT offerings which would allow them to raise PhP5 billion this year and up to PhP15 billion in 2020. 
By listing 1.2 million square meters (sq.m.) under their leasable portfolio, they expect to bring in PhP59.4 billion in proceeds. They plan to use these REIT-generated funds to finance the expansion of their hospitality and industrial projects, according to Business World. Over the next two years, DoubleDragon also projects to make PhP16.1 billion in sales from its new inventory from their hotel business. These are located in Cebu, Boracay, Bohol, and Palawan.

Visit our website for more details about Flatx

Comments

Leave a Reply

Your email address will not be published. Required fields are marked *