Gamer diversifies with REIT venture

As part of its portfolio diversification efforts, listed gaming company IP E-Game Ventures Inc. is scheduled to complete the incorporation of its wholly-owned real estate investment trust (REIT) arm within the third quarter of the year.

In a clarificatory filing on Wednesday, IP E-Game Ventures said it plans to invest at least P300 million in capitalization for the proposed REIT company. 

“This transaction envisions to provide the company with recurring revenues and profits. Upon realization, this will translate to an improved financial performance for the Company and aims to improve shareholder value,” the company said. 

“(This) will also potentially increase the amount of convertible debt and equity investments of the company in the foreseeable future,” it added. 

Sourced from equity, debts

According to IP E-Games Ventures, the planned REIT company will be funded through a combination of equity and convertible debt and other instruments.

A REIT, or real estate investment trust, is a corporation that mainly invests in income-generating real estate, like office spaces, malls, service apartments, hotels, hospitals, and warehouses.

REITs must distribute at least 90 percent of their income as dividends each year to qualify for certain tax benefits. This dividend distribution serves as a tax shield for corporate income tax.

IP E-Game Ventures primarily operates in interactive gaming and content distribution to local, regional, and global markets.

The company is currently transitioning from its old business model to a new strategic focus based on market opportunities.

Additionally, it is actively exploring opportunities in gaming, leisure and entertainment, and natural resources.