Philippines competes against Singapore to lure REIT listings

SINGAPORE: Singapore’s dominant position as a real estate investment trust listing hub in Asia is being eyed by a new contender: the Philippines.

The Philippines Securities and Exchange Commission recently eased tax and ownership rules in an effort to lure REIT listings by property developers in the country.

Ayala Land Inc is planning to raise US$500 million once the rules are amended, which could be the first REIT listing in the country.

A deal of this size would make it one of the five biggest initial public offerings in the Philippines on record, according to data compiled by Bloomberg.

Singapore scored the most REIT IPOs in Asia excluding Japan last year, with the trusts raising some US$2.1 billion.

The Singapore exchange topped others in the region in terms of money raised by REIT listings for five of the past 10 years.

Investors hunting for yield in a falling interest rate environment also led to REITs listed in the city-state raising additional funds at a record pace last year.