“REITs will help boost our ‘Build, Build, Build’ program, given the wide range of real estate property assets it can own. Infrastructure investments will primarily fuel our bounce back plan. With their high multiplier effect, these investments will stimulate demand and create much-needed new jobs and businesses,” Finance Secretary Carlos Dominguez III said
This article originally appeared on Philippine News Agency. You can view the original article here: https://www.pna.gov.ph/articles/1112152
Finance Secretary Carlos Dominguez III said Thursday the Philippines’ first Real Estate Investment Trust (REIT) listing done by the Ayala-backed AREIT Inc. signals that the domestic market is ready to resume business amid the challenges arising from the coronavirus-induced global health and economic crisis.
Dominguez said the country’s first REIT will deliver to the economy a “powerful financial concept” that aims to promote greater inclusiveness in the financial system among Filipinos as it will democratize wealth by opening for thousands of small investors the opportunity to invest in secure and profitable real estate projects.
“This public offering is a strong vote of confidence in our good economic prospects and in the resiliency of many of our industry sectors, some of which will be occupants of Ayala Land Inc. (ALI)’s REIT properties,” said Dominguez in his videotaped message congratulating ALI on the success of its initial public offering (IPO) and listing of its REIT at the Philippine Stock Exchange (PSE).
“It shares in the optimism that, notwithstanding the global economic downturn today, the Philippine economy has strong fundamentals to rise quickly from the devastation brought about by the global health emergency,” he added.
Dominguez said he is optimistic that AREIT’s public offering and listing will encourage more companies to form REITs that would “provide attractive and dependable investment opportunities for the average Filipino.”
On top of being a secure investment vehicle for small investors, REITs also provide multiplier effects on the economy, considering that the capital and profits to be raised by REIT sponsors will be reinvested exclusively in the domestic real estate and infrastructure sectors, he said.
“A REIT public offering not only signals that there is strong confidence in existing real properties, but that the company sees new opportunities for expansion with the proceeds of the offering,” said Dominguez, who had strongly pushed the implementation of the 11-year old Republic Act (RA) No. 9856 or the REIT Law ever since he assumed the finance portfolio in 2016.
To read the rest of the article, please use this link: https://www.pna.gov.ph/articles/1112152
13 August 2020