The Securities and Exchange Commission (SEC) has approved the rental pool program of Damosa Land Inc., the first securities issuer to successfully register under the streamlined guidelines on Securing and Expanding Capital in Real Estate Non-Traditional Securities or SEC RENT.
In its en banc meeting, the agency approved company’s registration statement covering 100 certificates of participation in the condotel project of TRYP by Wyndham Samal.
Valid for 20 years starting from the date of the operation, the certificates cover 94 standard class condotel units with an offer price of P50,000; four deluxe class units worth P75,000 each; and two suite class units with an offer price of P100,000 each. All units in TRYP by Wyndham Samal will be enrolled under a mandatory condotel rental pool program. Each unit will automatically be included in the rental pool upon purchase, allowing it to be marketed, rented and managed as hotel accommodation for hotel guests without transferring ownership.
The rental pool arrangement is expected to gross up to P5.2 million, which will be used to fund the company’s pre-operating expenses and to provide a buffer for the first three months of operations.
The project, located in Barangay Limao, Samal, Davao del Norte, is expected to be launched in the fourth quarter this year, with construction set to begin in the first quarter of 2026. The project is expected to be completed in the third quarter of 2028, with the opening scheduled in the fourth quarter of the same year, according to its latest timeline submitted to the SEC.
Implemented through SEC Memorandum Circular No. 12, Series of 2024, the SEC RENT streamlines the registration process for securities of real estate firms involved in selling or offering investment contracts through rental pool agreements.
Rental pool agreements involve deals where a property developer sells or offers units in real estate projects such as condominiums, hotels or resorts to the public. Under the deals, buyers contribute the units to a rental pool managed and operated by the company or a third-party operator. In turn, the buyers are entitled to receive a share in profits earned by renting out the units to third parties.