THE Securities and Exchange Commission (SEC) has approved a DMCI Project Developers Inc. rental pool program covering more than 2,000 certificates of participation tied to two resort-oriented residential projects.
The SEC en banc on Tuesday rendered effective the company’s registration statement covering 2,138 certificates of participation in pool-sharing agreements, subject to compliance with remaining requirements.
The program carries a joining fee of P50,000 per participant, translating to an aggregate joining fee of about P106.9 million.
The rental pool arrangement covers condotel units in the Solmera Coast development in Batangas and the Moncello Crest project in Benguet, which are expected to be completed in February 2028 and August 2029, respectively.
Under the program, owners enter into a management contract allowing their units to be operated as part of a unified hospitality business.
Investors will earn a share of revenues generated from rental operations after applicable taxes, fees and other charges are deducted.
The management contract will have an initial term of 10 years and will automatically renew unless otherwise agreed by the parties.
The approval was granted under the SEC’s Securing and Expanding Capital in Real Estate Non-Traditional Securities (SEC RENT) framework, which streamlines the registration of securities linked to rental pool arrangements.
Rental pool agreements are considered investment contracts whereby buyers contribute their units to a managed rental pool and receive a share of income generated from leasing the properties.
The SEC introduced the SEC RENT framework in 2024 to facilitate capital raising for real estate projects while providing regulatory oversight for investment-based property offerings.
Shares of DMCI Holdings Inc., parent of DMCI Project Developers, were down P0.26, or 3.10 percent, at P8.14 each on Friday.
