Listed gaming firm IP E-Game Ventures Inc. plans to diversify into real estate investment trust (REIT).
IP E-Game said in a disclosure to the stock exchange Friday its board authorized the company to invest in soon-to-be-formed company that would engage in the REIT business.
The board also allowed its president and chief executive Jaime Enrique Gonzalez and/or its chief financial officer Mary Jenelle Palma to execute and sign the relevant investment and/or subscription agreements and other documents and papers related to the planned investment.
“The investment of the issuer in the REIT corporation is subject to the approval of the pertinent regulatory bodies, after compliance with the relevant laws, rules and regulations in the incorporation, registration and listing of the said REIT company,” IP E-Game said.
An REIT is a corporation that primarily invests in income-generating real estate such as office spaces, malls, service apartments, hotels, hospitals, warehouses and the likes.
REITs are required to distribute a minimum 90 percent of its distributable income as dividends annually to avail of certain tax benefits, as dividends distributed operate effectively as a tax-shield for corporate income tax.
The company said it would fund its investment into the REIT company through a combination of equity and convertible debt and other instruments.
IP E-Game Ventures is primarily engaged in the business of interactive gaming and content distribution to the local, regional and global market.
It offers a portfolio of online games including massively multiplayer online role-playing games and casual online games.
The company is in transition from its old business model to a new strategic focus based on market opportunities. It is also actively studying opportunities in the gaming, leisure and entertainment and natural resources.
Trading of IP E-Game shares has been suspended by the Philippine Stock Exchange in May 2017 due to non-filing of structured reportorial requirements. Its shares were last traded at P0.0094 apiece.
