Real Estate Investment Trust law attracts investors

MANILA, Philippines - The introduction of REIT (Real Estate Investment Trust) legislation in the Philippines has attracted a significant level of interest from overseas REIT investment firms.

Malaysian REIT firm Axis REIT Managers Berhad is among the foreign companies that are scouring investment opportunities in the Philippines.

Axix REIT Managers is looking to share its REIT expertise with Philippine companies intending to tap that particular market.

Axis chief executive officer Stewart LaBrooy is arriving in Manila as one of the speakers during the REIT Asia Pacific Philippines Summit 2010 scheduled on July 27 to 28.

Axis REIT Managers’ primary objective is to ensure that it provides a regular and stable income distribution to unitholders and ensure longterm growth in the net asset value of the Fund.

The company aims to achieve this through an organic growth strategy by maintaining and improving the occupancy and net property income within the portfolio of properties, an acquisition growth strategy by selective acquisition of yield accretive properties, and a financing strategy by putting in place a cohesive debt and equity strategy which also addresses funding cost risks.

LaBrooy said “the conservative gearing levels and low beta of these stock have led to a renewed interest in the sector in the light of the very highly volatile global markets which are finding it difficult to shake off the effects of the Global Financial Crisis.”

He said Asia has witnessed over the past year one large successful REIT listing in Singapore and two in Malaysia with a total asset valuation of $2.25 billion.