structure limits oversight
In a move that the Philippines hopes will encourage real
estate investment, the country is set to enact a new law
allowing Reits to be set up. But their success could be
scuppered by an unusual structure that limits oversight.
Rather than use the more common trust structure, Philippine
Reits will use a corporate structure. This will mean less
regulation, which could discourage potential investors.
In a trust structure, the trustee holds the assets and
is the guardian of due process, said Milton Cheng at
Baker & McKenzie. One of the trustees