Monday, May 28, 2012

PSE Targets 2013 for REITs in the Philippines

IN THE NEWS


A real estate investment trust or REIT is a modern innovation in finance which allows small investors to participate in future and existing real estate development projects. While the issuance of REITs in the Philippines has already been covered by the REIT Act of 2009, property developers have found requirements too steep to actually push through with an issue. Concerns center on a 40% public-ownership requirement, which needs to be raised to 67% in three years, and the imposition of value-added tax on the transfer of property assets into the REIT. The PSE now proposes changes to these regulations to ease the burden on potential issuers and lead to the first REIT offerings in 2013.

REITs have generated considerable interest from both property developers and investors; the eventual issuance of REITs is seen to further the development of local financial markets. As such, the SEC and the Department of Finance have expressed openness to review the proposals of the PSE.

via Business Mirror

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