What are the business and regulatory factors for a successful Philippine REIT market?

In an attempt to determine what business and regulatory factors are required for the successful establishment of a Real Estate Investment Trust (REIT) structure in the Philippines, we analyzed the macro and microeconomic factors affecting the Philippines property market. The proposed law governing the REITs in the Philippines was also analyzed and compared with other REIT regulation in Asia. In the Asian REIT industry, supply and demand issues are inherently important. However, regulations, governing their activities, are also a factor in their growth and success. On the Philippine REIT supply side, the office, retail and hotel sectors offer acquisition potentials for REITs. Key demand drivers for real estate in the Philippines have been the increasing remittances from Overseas Filipino Workers, which have increased consumer spending in residential real estate and consumer goods, prompting rent growth in the retail sector. Another factor is the phenomenal growth of the Business Process Outsourcing industry which is driving both demand for office and residential supply On the REIT demand side, there is a strong incentive for real estate developers/owners/sponsors to divest their properties into REITs in order to access an alternative and cheaper source of capital caused by the increasing globalization and securitization of real estate. Opportunities to create fee-based businesses through external management contracts with REITs also exist. For potential REIT shareholders, there is clear investor demand for a tax efficient, yield driven investment vehicle such as REITS, which provide, not only higher transparency, professional management, greater liquidity and more stable return, but also diversification for their local and global portfolios.

Department dc:contributor.department

Massachusetts Institute of Technology. Center for Real Estate

Grantor dc:publisher

Massachusetts Institute of Technology

Year dc:date.issued

2008

Author dc:creator

• Wenceslao, Delfin C

Advisor dc:contributor.advisor

• Lynn M. Fisher.

• Architecture.
• Center for Real Estate.

Statement dc:rights

• M.I.T. theses are protected by copyright. They may be viewed from this source for any purpose, but reproduction or distribution in any format is prohibited without written permission. See provided URL for inquiries about permission.

Licence dc:rights.uri

• http://dspace.mit.edu/handle/1721.1/7582

Language dc:language.iso

eng

Handle dc:identifier.uri

http://hdl.handle.net/1721.1/58632

OAI identifier oai:identifier

oai:dspace.mit.edu:1721.1/58632