Posted on 09:36 PM, January 06, 2010 [ BusinessWorld Online ]
The number of property firms interested in putting assets under real estate investment trusts or REITs has grown following the enactment of a new law, the head of the stock exchange said yesterday.
In an interview, Philippine Stock Exchange (PSE) President Francis Ed.
Lim said the PSE has so far received 28 inquiries regarding REITs.
“I am not saying that all of these will be listed but I am saying that there is so much interest in terms of REIT,” he said.
A REIT is a publicly listed corporation that will invest in income-producing real estate assets like apartments, office buildings and warehouses.
Listed firms have expressed interest in the new law because of tax perks, which include an exemption from the initial public offering tax.
Industry players waiting for the implementing rules, which the exchange said would likely come out this quarter. Property experts have said REITs have a huge potential in the country considering the number of income-generating office buildings.
The PSE is banking on the passage of more capital market reform bills like the REIT law to spur interest in the stock market. Bourse officials have expressed optimism that there would be more initial public offerings this year.
Last year, the PSE index enjoyed a banner year, posting a 63% growth, the highest annual index growth of the local market since 1994 when the exchange first operated as a merged entity following the unification of the Manila Stock Exchange and Makati Stock Exchange.
[ Real Full text of Republic Act No. 9856, Real Estate Investment Trust [REIT ] Act of 2009 ]
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