SEC clears Damosa Land’s rental pool program, first under SEC RENT

​The Securities and Exchange Commission (SEC) has considered favorably the rental pool program of Damosa Land, Inc., the first securities issuer to successfully register under the streamlined guidelines on Securing and Expanding Capital in Real Estate Non-Traditional Securities (SEC RENT).

​In its meeting on September 26, the Commission En Banc resolved to render effective the company’s registration statement covering 100 certificates of participation in the condotel project of TRYP by Wyndham Samal, subject to its compliance with remaining requirements.

Valid for 20 years starting from the date of the operation, the certificates cover 94 standard class condotel units with an offer price of P50,000; four deluxe class units worth P75,000 each; and two suite class units with an offer price of P100,000 each.

All units in TRYP by Wyndham Samal will be enrolled under a mandatory condotel rental pool program. Each unit shall automatically be included in the rental pool upon purchase, allowing it to be marketed, rented, and managed as hotel accommodation for hotel guests without transferring ownership.

The rental pool arrangement is expected to gross up to P5.2 million, which will be used to fund the company’s pre-operating expenses and to provide a buffer for the first three months of operations.

The 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 the first quarter of 2026. The project is expected to be completed in the third quarter of 2028, with the opening scheduled in the fourth quarter of the same year, according to its latest timeline submitted to the SEC.

Implemented through SEC Memorandum Circular No. 12, Series of 2024, SEC RENT streamlines the registration process for securities of real estate firms involved in selling or offering investment contracts through rental pool agreements.

Rental pool agreements are defined as 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 deals, buyers contribute the units to a rental pool managed and operated by the company or a third-party operator. In turn, the buyers are entitled to receive a share in profits earned by renting out the units to third parties.