The Philippines approves second REIT listing worth $303 billion

The DDMP REIT will put forward up to Php6.54 billion worth of common shares to the stock market

In the Philippines, the Securities and Exchange Commission (SEC) has expressed approval in a PHP14.7 billion (USD303 million) initial public offering by DDMP REIT Inc., property developer DoubleDragon Properties Corp’s real estate investment trust (REIT), reported Inquirer.net.  

Emilio Aquino, SEC chair, said at a forum with the Financial Executives Institute of the Philippines (Finex) that, “we just approved, at least at the level of the SEC, the DoubleDragon REIT and we are expecting five more (listings) coming.”  

REIT is a corporation that mainly invests in income-generating real estates such as office spaces, service apartments, shopping malls, or even hospitals and hotels. This allows investors to directly invest in completed projects rather than the developers themselves.  

DoubleDragon has instilled the first six buildings in its single most valuable property portfolio, the DD Meridian Park in Pasay City, into the trust. According to the regulatory filing submitted to the SEC in November, DDMP REIT will put forward up to 6.54 billion worth of common shares to the stock market at PHP2.25 per share.  

More: Ayala Corporation to be the first REIT in the Philippines

This marks the second REIT listing in the Philippines, following Ayala Land-sponsored AREIT Inc. Based on the maximum price, this could be larger than AREIT’s PHP13.6 billion (USD280.9 million) offering.  

DDMP REIT has authorised DBS, Credit Suisse, Nomura, and PNB Capital to act as joint book-runners and global coordinators with ICCP, Macquarie, RCBC Capital, Maybank Kim Eng, and CIMB for the REIT IPO.