MANILA, Philippines — IP E-Game Ventures Inc., a former leading online game publisher, is investing at least P300 million to pursue its planned foray into the real estate investment trust (REIT) space this year.
IP E-Game, which last week disclosed plans to invest in a corporation that would engage in the business of REIT, said it expects to complete the incorporation of the REIT company in the third quarter.
Following its incorporation, the company intends to undertake subsequent activities such as raising of capital and acquisition of assets.
The investment into the REIT company will be funded through a combination of equity and convertible debt and other instruments.
IP E-Game said it plans to enter in convertible debt instruments with investors that will finance the incorporation of the REIT.
With its entry into the REIT space, the listed company expects to have recurring revenues and profits.
“Upon realization, this will translate to an improved financial performance for the company and aims to improve shareholder value,” IP E-Game said.
The move will also expand the company’s activities into real estate related investments.
“These activities will also potentially increase the amount of convertible debt and equity investments of the company in the foreseeable future,” it said.
IP E-Game used to be a leading online game publisher in the country, with a portfolio of massively multiplayer online role-playing games and casual online games.
It pioneered the free-to-play business model, in which gamers are not required to pay a subscription fee to online games.
IP E-Game then became primarily an investment holding company and has since embarked “on a transition from its old business model to a new strategic focus based on market opportunities deemed attractive by its board.”
Among the sectors the company was previously exploring are gaming, leisure, entertainment and natural resources.
It also earlier expressed plans to pivot towards the technology sector, particularly financial technology.
IP E-Game debuted on the Philippine Stock Exchange in 2010, making it the first online gaming company listed on the PSE.
However, the PSE 2017 suspended the trading of shares of IP E-Game due to its failure to submit its annual report using SEC Form 17-A. Its last trading date was on May 2, 2017, with its shares closing at P0.0094