MANILA - The House of Representatives on Tuesday approved on third and final reading House Bill 7525 which provides for a reinvestment framework for Real Estate Investment Trust (REIT) sponsors or promoters.
The bill would also amend Republic Act 9856 also known as "The Real Estate Investment Trust (REIT) Act of 2009."
According to the congressional fact sheet submitted by the Committee on Economic Affairs, HB 7525 seeks to promote reinvestment of the proceeds made by a sponsor or a promoter from the sale of REIT shares and other related securities to enable the real estate industry in the Philippines to thrive.
It also aims to encourage sponsors and promoters to build, sell and reinvest their proceeds or gains from the growth of more infrastructure projects benefiting Filipinos.
House committee on economic affairs chair and Negros Occidental 1st District Rep. Gerardo Valmayor Jr said last week that the main purpose of the REIT Law is to allow both small and large investors to participate in the direct ownership of real estate.
"It is an alternative investment instrument to foreign investors as well as OFWs. It also provides real estate companies a cheaper source of capital while promoting economic development, growth in tourism and liquidity in the capital markets," Valmayor said in a sponsorship speech.
The bill will be sent to the Senate for action.
However, Congress will go on recess from March 25 to May 7, 2023.