Tuesday, May 3, 2011
TO TAKE advantage of the region’s economic upturn, Ayala led- Cebu Holdings Inc. (CHI) will align their plans and strategies for the eventual implementation of the Real Estate Investment Trust (REIT).
CHI president Francis Monera said in a recent press briefing that the implementation of the REIT will bring additional capital from external investors to be used in the business expansion of the company.
He said REIT allows an increase of the financial capacity of the company while it continues to earn recurring income from the REIT company.ExpansionCHI earlier announced the possible expansion of the Asiatown IT Park, which is part of the P5- billion capital expenditure set by the Ayala Group of Companies for this year.
The company also plans to develop more office spaces for the BPO and information technology (IT) companies.
An REIT is a stock corporation created to own and manage income-generating real estate such as office buildings, residential condominiums, shopping centers, hotels, warehouses, hospitals, airports and toll ways.
The Philippine Stock Exchange (PSE) said property companies with predictable cash flows could form REITs to facilitate the realization of their projected gains ahead of time. This translates to immediate access to fresh capital, which may be plowed back into new projects and investments, redounding to new jobs and bringing economic development.
The PSE noted that Cebu is one of the favorable markets for REIT outside Metro Manila because of its upbeat real estate industry and booming business process outsourcing company.
With Cebu becoming a “catchment of opportunities,” CHI is also looking at getting more involved in Cebu’s development.
Monera said they are looking at areas where they could collaborate with the other sectors in the city for the establishment of support infrastructure necessary for the economic growth of Cebu.
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