Thursday, January 5, 2012

What happened to Philippine REITs?

I was anticipating the offering of real estate investment trusts (REIT) but leave it to the government to ruin its growth. Why would SM, Ayala or any major developer give up a huge 67% ownership (the public float demanded by this government) of its income generating properties. Comparatively, most of our neighboring countries only require a float of 10-25%. I don't know what the "bright minds" of Pres. Aquino's economic team are thinking but if the major developers are not availing of the investment vehicle, then something is wrong with the rules you have laid out.

They should revise the guidelines for it to be palatable for Philippine developers to make use of REIT. It helps them by offering a cheaper avenue to raise capital and it offers Filipinos the chance to own a share in income generating properties.

This is discouraging, and quite frankly, I sometimes ask myself why bother investing in the Philippines when I have access to first world investment products here. Well, I still believe that the country has massive potential and thus offer investors good returns, and that is in spite of the government. I am only one of countless investors, both Filipino and foreign willing to pour more into the country, only if we can find credible channels of doing so. Sorry for ranting. Happy investing!

1 comment:

  1. Reits or quality reits in developing countries seem like they have tremendous potential.