Philippine Developer to Raise Fund in Country's First Reit

Philippine property developer Ayala Land Inc is looking to raise USD500 million in the country’s first real estate investment trust (REIT) offering, according to local media reporting.

A law allowing REITs was passed in 2009 but property firms shied away from it because of the high public ownership requirement and unfavorable tax rules.

“We are testing the framework. We will start with a few assets only, primarily Makati central business district assets, basically offices,” Ayala Land Senior Vice President Jose Emmanuel Jalandoni was quoted by Reuters as saying.

Ayala Land is a unit of Ayala Corp, the Philippines’ oldest conglomerate, which has interests ranging from retail, energy to banking, healthcare.