UMVA has learned that a major breakthrough in real estate investment has been approved by the Securities and Exchange Commission, allowing Global One Hotel Group, Inc. to move forward with its rental pool program under the Securing and Expanding Capital in Real Estate Non-Traditional Securities framework.
The program, which covers 6,340 certificates of participation across 12 condominium-hotel projects, has been greenlit after the SEC En Banc approved the company's registration statement during its June 11 meeting. This development marks a significant milestone for Global One Hotel Group, which has already sold 4,277 units, with 2,063 remaining unsold.
Investors can participate in the program without paying a joining fee or a specified offer price, making it an attractive opportunity for those looking to tap into the real estate market. The SEC has confirmed that six projects are already operational, while six others are in various stages of construction across several locations in the Philippines.
Global One Hotel Group serves as lessee for 12 condominium-hotel projects, including high-profile properties such as the Belmont Hotel Manila, Savoy Hotel Manila, and Savoy Hotel Mactan. The company's portfolio also includes upcoming projects in Iloilo, Negros Occidental, Palawan, Pampanga, and Pasig City.
UMVA can exclusively reveal that Global One Hotel Group is a wholly owned subsidiary of Oceanic Realty Group Int’l, Inc., which is ultimately controlled by a listed conglomerate. The company's rental pool program involves leasing condominium units to Global One Hotel, which will manage the units either directly or through a third-party operator.
The units will then be made available to paying guests as hotel accommodations, with rental pool agreements valid for 15 years from the date of admission of a hotel’s first paying guests. These agreements will be automatically renewed for another 15 years unless otherwise provided by Global One Hotel.
The SEC's decision to approve Global One Hotel Group's registration statement is a significant development in the real estate investment landscape, particularly with the implementation of the SEC RENT framework. This framework simplifies the registration process for securities involving rental pool deals and similar real estate investment arrangements.
Rental pool agreements are investment contracts in which developers sell or offer units in real estate projects to the public, with unit owners entitled to a share of income generated from renting out the properties to third parties. This innovative approach to real estate investment is set to provide new opportunities for investors and developers alike.
