Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

EIGHTEENTH CONGRESS
First Regular Session

House BiLLNo.__°163

Introduced by Representative Sharon S. Garin

EXPLANATORY NOTE

The Real Estate Investment Act of 2009 was enacted to promote the
development of the capital market for use as an instrument to fund
infrastructure projects and further improve the real estate industry. To this
end, the state must ensure that the funds invested in these companies are
reinvested in the Philippines to secure full domestic participation in the real
estate industry.

In view of the foregoing, the approval of this bill is earnestly requested.

a

SHAROKS-GARIN
AAMBIS/eiwa Periylist


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Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

EIGHTEENTH CONGRESS
First Regular Session

HOUSE BILLNO.___°163

Introduced by Representative Sharon S. Garin

AN ACT

AMENDING SECTIONS 3, 8, AND 9 OF REPUBLIC ACT NO. 9856, OTHERWISE
KNOWN AS “THE REAL ESTATE INVESTMENT TRUST (REIT) ACT OF 2009”

Be it enacted by the Senate and House of Representatives of the Philippines in
Congress assembled:

SEC. 1. Section 3 of Republic Act No. 9856 is hereby amended to read as

follows:

“Section 3. Definition of Terms. - For the purposes of this Act, the term:
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(GG) “REINVESTMENT PLAN” REFERS TO A SWORN STATEMENT,
DULY RECEIVED BY THE EXCHANGE AND THE COMMISSION,
SIGNED BY THE SPONSOR/PROMOTER AND THE PRINCIPAL
SHAREHOLDER OF THE REIT FIRMLY UNDERTAKING, AT THE
MINIMUM, TO REINVEST (1) ANY PROCEEDS REALIZED BY THE
SPONSOR/PROMOTER FROM THE SALE OF REIT SHARES OR

OTHER SECURITIES ISSUED IN EXCHANGE FOR INCOME-


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GENERATING REAL ESTATE TRANSFERRED TO THE REIT AND (I)
ANY MONEY RAISED BY THE SPONSOR/PROMOTER FROM THE
SALE OF ANY OF ITS INCOME-GENERATING REAL ESTATE TO THE
REIT, IN ANY REAL ESTATE, INCLUDING ANY REDEVELOPMENT
THEREOF, AND/OR INFRASTRUCTURE PROJECTS IN THE
PHILIPPINES, WITHIN ONE (1) YEAR FROM THE DATE OF RECEIPT
OF PROCEEDS OR MONEY BY THE SPONSOR/PROMOTER.”

(hh) “Related Corporation” xx

(ii) “Relate Part” 10x

(i) “Securities Regulation Code” xx

(kk) “Sponsor/Promoter” xxx

(ll) “Subsidiary” xx

(mm) “Synthetic Investment Products” 0x

(nn) “Taxable Net Income” »«

0K

SEC. 2. Section 8 of Republic Act No. 9856 is hereby amended to read as

follows:

“Section 8. Requirements. - Unless the Commission provides otherwise
and after public hearing, taking into account public interest, the need to
protect investors and develop the country's real estate investment industry
to make it globally competitive, the following requirements shall apply:
10K

8.19 REINVESTMENT IN THE PHILIPPINES - ANY PROCEEDS
REALIZED BY THE SPONSOR/PROMOTER FROM THE SALE OF REIT
SHARES OR OTHER SECURITIES ISSUED IN EXCHANGE FOR


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INCOME-GENERATING REAL ESTATE TRANSFERRED TO REIT AND
ANY MONEY RAISED BY THE SPONSOR/PROMOTER FROM THE
SALE OF ANY OF ITS INCOME-GENERATING REAL ESTATE TO THE
REIT, IN ANY REAL ESTATE, INCLUDING ANY REDEVELOPMENT
THEREOF, AND/OR INFRASTRUCTURE PROJECTS IN THE
PHILIPPINES, MUST BE REINVESTED IN THE PHILIPPINES WITHIN
ONE (1) YEAR FROM THE DATE OF RECEIPT OF PROCEEDS OR
MONEY BY THE SPONSOR/PROMOTER.

SEC. 3. Section 9 of Republic Act No. 9856 is hereby amended to read as

follows:

“Section 9. Reportorial and Disclosure Requirements. —

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9.4 REINVESTMENT PLAN - THE REIT SHALL SUBMIT A
REINVESTMENT PLAN TO THE EXCHANGE AND THE COMMISSION
UPON REGISTRATION. FURTHER, THE REIT MUST ANNUALLY
SECURE A CERTIFICATION FROM THE COMMISSION THAT IT IS
COMPLIANT WITH ITS REINVESTMENT PLAN.

9.5 Failure of Compliance - x

SEC. 5. Separability Clause. — If any provision of this Act shall be held

unconstitutional or invalid, the other provisions not otherwise affected shall remain in

full force and effect.

SEC. 6. Repealing Clause. — All laws, decrees, executive orders, rules and

regulations or parts thereof which are contrary to or inconsistent with this Act aré

hereby repealed, amended or modified accordingly.


61 SEC. 7. Effectivity. - This Act shall take effect fifteen (15) days after its complete
62 _ publication either in the Official Gazette or in a newspaper of general circulation.

63 Approved,