SEC approves Sta. Lucia Land’s rental pool deals

THE Securities and Exchange Commission (SEC) said Thursday that it has approved Sta. Lucia Land Inc.’s rental pool deals processed through the streamlined guidelines on Securing and Expanding Capital in Real Estate Non- Traditional Securities (SEC RENT).

The deals were approved on Tuesday.

Rental pool deals refer to investment contracts where a property developer sells or offers units in real estate projects such as condominiums, hotels or resorts to the public.

Under the arrangement, buyers contribute the units to a rental pool managed and operated by the company or a third-party operator.  Buyers then receive a share in profits earned by renting out the units to third parties.

The company is offering to the public certificates of participation priced at P70,000 apiece for 2,101 studio units; P80,000 for each certificate in 150 one-bedroom units; P90,000 each for certificates in 121 two-bedroom units; and P100,000 each for certificates in 10 three-bedroom units.

The SEC said 15 of the projects under the rental pool program are located in Quezon City, Baguio City, Rizal, Cavite, Batangas, Palawan, Iloilo, Cebu and Davao. They have been operating since at least 2011.

“A project in Cebu is still under construction and is expected to be completed by 2027,” it said.

The rental pool arrangement is expected to gross up to P60.31 million, computed based on the remaining unsold units available, which will be used to cover the working capital for projects to be disbursed in 2025 and 2026.

As holders of the certificates of participation, unit owners will be entitled to a share in the net profits earned by the pooled units made available as hotel rooms for paying guests; and personal use of the units for 30 nights per year.

“Implemented through SEC Memorandum Circular No. 12, Series of 2024, SEC RENT streamlines the registration process for securities of real estate firms that sell or offer investment contracts through rental pool agreements,” the SEC said.