A post by Cherry Castillo
The Securities and Exchange Commission (SEC) has approved last May 13, 2010, the Implementing Rules and Regulations or IRR of the Real Estate Investment Trust or REIT Act of 2009, also known as Republic Act 9856, An Act Providing the Legal Framework for Real Estate Investment Trust. As mentioned in my earlier post, the SEC had released the draft of the REIT IRR for public comments last April 19, 2010.
Changes on the draft REIT IRR
BusinessWorld reported that the most substantial changes on the draft REIT IRR that the SEC released last April 19, 2010, was the raising of the minimum capitalization for fund managers tasked to handle the REITs. It was raised to Php100 million from the original Php10 million contained in the draft IRR, as mentioned by Gerard M. Lukban, commission secretary of the SEC.
Effectivity of the REIT IRR
Under the effectivity clause of the REIT IRR, the rules shall take effect fifteen (15) days after its complete publication in the Official Gazette or at least two (2) newspapers of general circulation in the Philippines. This means we will have to wait for the published REIT IRR to know the exact date of effectivity. By the way, if you happen to see the approved REIT IRR published in any newspaper in the coming days, we would appreciate it if you would let us know by leaving a comment below.
As reported in the Manila Bulletin , Lukban also said that the SEC will have the REIT IRR published and then sent to the University of the Philippines Law Center so it can take effect. He estimated that the process will be completed in around 45 days.
More information about the Philippine REIT
For more information about the Philippine REIT, please read my previous articles below:
- Real Estate Investment Trusts (REITs) – The next big thing in real estate
- Republic Act No. 9856 – The Real Estate Investment Trust (REIT) Act of 2009 full text
Cherry is my wife. She is a certified public accountant (CPA) and lawyer.
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Text by Jay Castillo and Cherry Castillo. Copyright © 2010 All rights reserved.
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