In its Sept. 26 meeting, the SEC En Banc rendered effective Damosa Land’s registration statement covering 100 certificates of participation in the condotel project of TRYP by Wyndham Samal, subject to compliance with remaining requirements.
The SEC RENT framework, implemented through Memorandum Circular No. 12, Series of 2024, simplifies the registration process for securities issued by real estate firms engaged in rental pool agreements.
Details of the offering
Valid for 20 years from the start of operations, the certificates will cover 94 standard condotel units priced at P50,000 each, four deluxe units worth P75,000 each, and two suite units priced at P100,000 each.
All units will be enrolled under a mandatory rental pool program, which allows them to be marketed, rented, and managed as hotel accommodations for guests, while ownership remains with the unit buyers.
The rental pool arrangement is projected to gross up to P5.2 million, which will help fund pre-operating expenses and provide a buffer for the first three months of operations.
Project timeline
The condotel project, located in Barangay Limao, Samal, Davao del Norte, is expected to be launched in the fourth quarter of 2025, with construction to begin in early 2026. Completion is targeted for the third quarter of 2028, with the opening slated for the fourth quarter of that year.
Broader context
Rental pool agreements allow buyers of condominium, hotel, or resort units to contribute them into a shared pool, which is then managed by the developer or a third party. In return, buyers receive a share of profits generated from leasing the units.
The SEC said Damosa Land’s program sets the precedent for similar real estate investment offerings moving forward. —Ed: Corrie S. Narisma
