GT Capital open to setting up REIT
MANILA, Philippines — Despite a volatile stock market, GT Capital Holdings Inc. confirmed it was considering launching its own real estate investment trust (REIT) unit, but remained mum on a solid timeline.
In a disclosure to the Philippine Stock Exchange earlier, the Ty family-led conglomerate said it was “open to the possibility” of unveiling and publicly listing its own REIT “in the future if the right conditions are present.”
GT Capital added that the REIT’s launch would also depend on whether its real estate arm, Federal Land Inc. (FLI), could ramp up recurring income.
However, GT Capital clarified that it had no plans to launch and list FLI as a REIT and that it would “make the appropriate timely disclosure” should there be developments.
In the first quarter of the year, FLI registered a net income of P291 million, up by 1.75 percent from P286 million last year. Revenues likewise grew to P3 billion from P2.6 billion.
The property firm last year launched Yume, its first horizontal residential project under Federal Land Nomura Global Inc. (FNG), its joint venture with Japan-based Nomura Real Estate.
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Article continues after this advertisementFNG also launched the 4.5-hectare The Observatory community in Mandaluyong City and the 48-ha Meadowcrest project in Laguna. It has a planned “major relaunch” of its Met Park community in Pasay City, to boost FLI’s community offerings.
GT Capital’s statement comes even after property giant SM Prime Holdings Inc. confirmed the postponement of the launch of its own REIT.
SM Prime president Jeffrey Lim said it was “not the right time.” INQ
