The times they really are a-changin as
Dylan's gentle yet highly expressive croon must be ringing loud in their ears over and over like neanderthals banging in their heads. Unfortunately for these billionaires, things won't be getting back to normal anytime soon.
This is one of the key takeaways I got from the big launch of the amended implementing rules and regulations of the Real Estate Investment Trust or REIT Act of 2009 last Monday. REIT for all
Finance Secretary
In Davao, he said, there are many well known yet small property companies. "This is meant to be inclusive and make sure the entire country can participate rather than just
Dominguez said. The good secretary was referring to the easy minimum paid in capital requirement of just
It's clear that the administration is serious in its goal of spreading wealth to the provinces and away from imperial
Dominguez is right in saying that growth should be inclusive. I really couldn't agree more.
In fact, I've been consistently advocating for that. Indeed, I hope many players will list their REITs in the stock market.
I believe in the potential of this financial concept. With REITs, Filipinos can participate in the ownership of real estate companies and grow their money.
But I hope the small property developers would not be intimidated by additional costs they will incur with the need to have third-party REIT fund managers. What are REITs?
Companies that own and operate income-generating real estate assets are considered REITs.
These companies include offices, apartment buildings, hotels, warehouses and shopping centers. It's been 11 years since Republic Act 9856 or the REIT Act was signed into law, but the implementation has been stalled because of problematic provisions in the implementing rules.
The bad news is that the Duterte administration isn't exactly excited about
I heard that
Last year, the country's oldest conglomerate
through its property giant
It already set up
and
Salient provisions of the REIT rules
In any case, in a roundtable discussion on the REIT led by Sec. Dominguez, I learned more about the new rules.
I am hopeful that the REIT landscape in the country would indeed take off. Congratulations to Sec.
Dominguez,
Meanwhile, the
One provision I particularly like is the need to reinvest the large funds raised from REIT in the country's real estate and infrastructure sector.
It's a provision that Sec. Dominguez made sure would be part of the new rules.
"rather than the benefits being squirreled to other markets," he said. I think it's brilliant.
I hope corporate regulators and the PSE will be able to strictly monitor the use of funds. (Politicians pocketing taxpayers' money should actually do the same.
They should invest their stolen funds back into the domestic economy rather than stash them away in secret accounts in the
Going back to the REITs, I hope this would be the catalyst the local stock market needs nowadays. But there's the rub.
Investors are getting wary of all these anti-oligarch attacks which is why many have been dumping Philippine stocks. So for now, it remains to be seen if anyone would have the courage to list now that many businesses are afraid to be in the limelight.
Sec. Dominguez said they really have nothing to fear, but he quickly adds with a wide grin, "unless they have onerous contracts.
"
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