Securities and Exchange Commission Chairman Emilio Aquino; Philippine Stock Exchange President Ramon Monzon and PSE Board of Directors; Ayala Land Chairman Fernando Zobel de Ayala; Ayala Land President Bernard Vincent Dy; Ayala Land Real Estate Investment Trust Chairman Jose Emmanuel Jalandoni; distinguished guests; ladies and gentlemen: good morning.
Today is a momentous event. More than a decade since the enactment of the REIT Law or the Real Estate Investment Trust Act, we will witness the Philippines’ first REIT listing through Ayala Land’s public offering.
Earlier this year, the Duterte administration successfully resolved the issues that prevented REITs from finally taking off since it was passed into law in 2009. We took on the challenge of crafting a regulatory framework for this financial instrument that is right for the country.
Ayala Land’s REIT public offering is timely. It signals that our market is ready to resume business after all the difficulties posed by the COVID-19 pandemic.
This public offering is a strong vote of confidence in our good economic prospects and in the resiliency of many of our industry sectors, some of which will be occupants of Ayala Land’s REIT properties. It shares in the optimism that, notwithstanding the global economic downturn today, the Philippine economy has strong fundamentals to rise quickly from the devastation brought about by the global health emergency.
Today, we also deliver to our economy a powerful financial concept to promote greater inclusiveness in the financial system. This REIT public offering will democratize wealth by opening access to thousands of small investors wanting to be shareholders in secure and profitable real estate projects.
Aside from the potential advantages this instrument offers to investors, REITs provide a positive multiplier effect on the economy due to enhanced economic activity. A REIT public offering not only signals that there is strong confidence in existing real properties, but that the company sees new opportunities for expansion with the proceeds of the offering.
As you may know, the Duterte administration made sure in the REIT’s implementing rules and regulations that the capital raised and the profits earned by sponsors or promoters of REITs will be reinvested exclusively within our country’s real estate and infrastructure sectors. This ensures that the funds invested by Filipinos will stay in our domestic economy and will contribute to the modernization of our infrastructure.
Ayala Land’s REIT public offering is, therefore, very encouraging especially at this time when we are preparing the economy to recover from the pandemic. REITs will help boost our Build, Build, Build program given the wide range of real estate property assets it can own. Infrastructure investments will primarily fuel our bounce back plan. With their high multiplier effect, these investments will stimulate demand and create much-needed new jobs and businesses.
I congratulate Ayala Land for this groundbreaking endeavor. We are optimistic that this initial public offering today will open the road for more REITs to come to the market and provide attractive and dependable investment opportunities for the average Filipino.
Let us continue to work together to inspire public confidence in our ability to quickly recover from this crisis and ensure that our economy emerges stronger and more resilient than before.
Thank you.
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