CenturyProperties Group Inc. plans a REIT launch in the Philippines following anexpected portfolio boost, according to a report from Manila's BusinessWorld.
Theproperty developer aims to complete seven projects spanning a net leasable areaof 125,000 square meters by 2019, taking its recurring annual revenues to up to1 billion Philippine pesos by 2020, the report said, citing CFO Jose Carlo R.Antonio, who was speaking at the company's annual stockholders meeting.
Thecompany intends to rely on recurring revenues from the office, retail, economichousing, and leisure and tourism aspects of its portfolio, president and CEOJose E. B. Antonio told the press.
Projectsslated for completion for 2017-2019 include The Novotel Suites Manila inMandaluyong, being developed in partnership with AccorHotels; and Forbes Media Tower at Century City, ajoint venture with Mitsubishi Corp. The company also plans to commence work ontwo economic housing projects spanning 26 hectares and 44 hectares near theNational Capital Region before 2016-end.
Theexpansion of the group's leasing portfolio will allow flexibility to launch aREIT after the new Philippine government relaxes public float requirements andtax treatments, the CFO said, according to the report.
Thecountry is yet to see a major property developer list a REIT despite a lawimplemented in 2009. The new president has initiated a review of variousprovisions, including an increase of minimum public float of REITs to 67% from33% in three years, the report said.
As of July 22, US$1 was equivalent to 47.13 Philippine pesos.