Damosa Land Inc. has secured the approval of the Securities and Exchange Commission (SEC) for its P5.2-million rental pool program, making it the first company to register under the regulator’s new guidelines for real estate securities. The SEC on Tuesday said Damosa Land’s registration statement covered 100 certificates of participation in the condotel project of TRYP by Wyndham Samal, although this is still subject to its compliance with remaining requirements.
The certificates 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 at P100,000 each.
Each unit is automatically included in the rental pool program upon purchase. These will be marketed, rented and managed as hotel accommodation for hotel guests without transferring ownership.
Under rental pool arrangements, buyers acquire units that are collectively managed by the developer or a third-party operator. In return, buyers receive a share in the developer’s income earned through renting out the units.
Based on the SEC’s Memorandum Circular No. 12 Series of 2024, rental pool agreements are investment contracts and, therefore, securities that need to be registered with the commission before being offered to the public.
The guidelines cover investment contracts, certificates of participation, profit-sharing agreements and other forms of securities issued by real estate developers in relation to rental pool agreements, such as condotels.