Mindanao-based real estate and agro-industrial developer Damosa Land has become the first securities issuer to successfully register under the streamlined guidelines for selling or offering investment contracts through rental pool agreements.
The Securities and Exchange Commission (SEC) announced that it has approved Damosa Land’s rental pool program, making it the first securities issuer to successfully register under the streamlined guidelines for Securing and Expanding Capital in Real Estate Non-Traditional Securities (SEC RENT).
Rental pool agreements are defined by the SEC as investment contracts, where a property developer sells or offers units in real estate projects, such as condominiums, hotels, or resorts, to the public.
Under these arrangements, buyers contribute their units to a rental pool, which is managed and operated by the company or a third-party operator.
The buyers, in turn, are entitled to receive a share in profits earned by renting out the units to third parties.
The SEC RENT was implemented through SEC Memorandum Circular 12, Series of 2024. It streamlines the registration process for securities of real estate firms involved in selling or offering investment contracts through rental pool agreements.
The SEC en banc, in a meeting on Sept. 26, resolved to render effective Damosa Land’s registration statement covering 100 certificates of participation in the condotel project of TRYP by Wyndham Samal, subject to its compliance with remaining requirements.
The certificates, which are valid for 20 years starting from the date of the operation, cover 94 standard class condotel units with an offer price of P50,000 each, 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.
The SEC said that 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.