"We are in discussions with a party in Manila to take an equity position and assist in the management of its future listed REIT," Axis-REIT chief executive officer Stewart LaBrooy told Business Times.
LaBrooy was asked to comment on online reports in the Philippines last month that Axis-REIT is scouting for investment opportunities in the Philippines.
According to reports, overseas REIT investment firms, including Axis-REIT, are turning their radar to the Philippines following the recent approval of the respective REIT rules by the Securities Exchange Commission and the Philippine Stock Exchange.
Unfortunately, LaBrooy said there are delays in publishing the implementing rules, which will prolong the launch of any new REITS in the Philippines.
He maintained that Axis-REIT has always taken the stand that it will focus on Malaysian assets and not take on cross-border acquisitions due to the possible risks the strategies present.
Labrooy also confirmed that he was in Manila as one of the speakers during the REIT Asia Pacific Philippines Summit 2010 held from July 27 to 28.
A REIT is a fund that mainly owns income-producing real estate such as shopping centres, offices, warehouses and hotels. The units of many REITs are traded on major stock exchanges.
To qualify as a REIT, a fund must have most of its assets and income tied to real estate investment and must distribute at least 90 per cent of its total income to unitholders annually.
Asked on the potential of REIT market in the Philippines, LaBrooy said the country has a large cluster of excellent shopping malls, offices and BPO properties that are REIT-able and an emerging logistics market as well.
"These are owned by well-known property companies like Alaya, Robinsons and S&M. They should have a successful REIT industry with good growth opportunities," he added.
The Axis-REIT fund was listed on Bursa Malaysia on August 3 2005. In December 2008, it was reclassified as a syariah-compliant REIT.
By Business Times
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