SEC clears DMCI rental pool program

MANILA, Philippines – The Securities and Exchange Commission (SEC) has approved the rental pool program of DMCI Project Developers Inc., paving the way for the company to offer investment contracts tied to two condotel developments in Batangas and Benguet.

In a statement on Friday, the SEC said its Commission En Banc had resolved on June 16 to render effective the company’s registration statement covering 2,138 certificates of participation in pool sharing agreements, subject to compliance with remaining requirements.

READ: SEC starts to regulate sale of condotels, rental pool assets

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Rental pool agreements are considered investment contracts in which developers sell or offer units in real estate projects such as condominiums, hotels and resorts, while investors earn a share of profits generated from leasing the units to third parties.

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“The rental pool arrangement of DMCI Project Developers has a joining fee of P50,000, for an aggregate joining fee of P106.9 million,” the SEC said.

The approval was granted under the SEC’s streamlined guidelines on Securing and Expanding Capital in Real Estate Non-Traditional Securities (SEC RENT). This governs investment contracts linked to rental pool arrangements.

The program covers condotel units in DMCI Project Developers’ Solmera Coast project in Batangas and Moncello Crest project in Benguet. These are expected to be completed by February 2028 and August 2029, respectively.

Under the arrangement, unit owners will contribute their properties to a rental pool managed either by the developer or a third-party operator. In return, investors will be entitled to a share of revenues generated from renting out the units.

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The SEC said participants must execute a management contract authorizing the operator to market, manage and operate the units as part of a unified hospitality business.

Income will be derived from room revenues generated by participating units based on a revenue allocation methodology outlined in the management contract, after deducting applicable taxes, fees and other charges.

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The management contract will have an initial term of 10 years unless terminated earlier and will automatically renew unless the parties agree otherwise. INQ

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