CREBA vice president for housing affairs Demetrio Posadas, SEC markets and securities department director Oliver Leonardo lead the formal launch of the Securing & Expanding Capital in Real Estate Investment Transactions on May 21, 2025 at the SEC headquarters in Makati City. It simplifies the registration process for securities of real estate companies engaged in selling or offering investment contracts through rental pool agreements. (Photo courtesy of SEC)
The Securities and Exchange Commission (SEC) is calling on real estate companies—big and small—to explore the capital markets as a path to growth and innovation.
In a move aimed at making it easier for developers to raise funds, the SEC officially launched its new program, SEC RENT (Securing & Expanding Capital in Real Estate Investment Transactions), on May 21 at its headquarters in Makati City.
This new framework, outlined in SEC Memorandum Circular No. 12, Series of 2024, simplifies the process for real estate firms looking to register securities—especially those involved in rental pool agreements.
So what exactly are rental pool agreements? In this setup, developers sell units in projects like condos, hotels, or resorts to investors who, in turn, contribute those units to a shared rental pool. The properties are then rented out, and investors earn a share of the income based on previously agreed terms.
“This industry accounts for 5.6% of the country’s GDP in 2024. Real estate remains a powerful engine of economic growth, intricately linked to construction, finance, retail, and tourism,” said SEC commissioner McJill Bryant Fernandez. “Its scale and potential make it a natural candidate for greater engagement with the capital markets.”
As part of the new rules, the SEC’s Markets and Securities Regulation Department (MSRD) must now review applications for securities registration within just 45 days of submission—an effort to streamline access to funding for property firms.
The launch of SEC RENT was done in collaboration with the Chamber of Real Estate & Builders’ Association, Inc. (CREBA), whose 4,000-plus members span the full spectrum of the property sector.
For many smaller firms, this initiative represents a shift in mindset. “We’ve always thought capital market options were just for the big players,” said Demetrio Posadas, CREBA’s Vice President for Housing Affairs. “Most of us rely on loans to keep going. But with the SEC’s efforts, even small companies like ours can now dream of participating in this space.”
By lowering the barriers to entry, the SEC hopes to empower more real estate firms to tap into public investment—driving sector growth while opening new opportunities for everyday investors.
