Professional Documents
Culture Documents
Submitted by:
Federico C. Cuervo
President and CEO
Cuervo Valuers & Advisory, Inc.
cuervoappraiser@gmail.com
After CARP was implemented, we still do not see the benefits to the
urban poor. Stating that “land that has been covered by CARP is more
productive than what is not” only confirms that it is precisely
productive land that was covered by CARP. To include non-productive
land into CARP will eventually be subjected to questions. The truth can
best be seen from the ever-increasing number of urban poor that have
given-up their hopes for any opportunities in the country-side.
A. To the economy:
1. Generate capital through the global trend towards regional real
estate market integration and cross-border investments.
2. Make use of a structure for the adoption of global real estate
standards.
3. Reduce the financial and social costs of CARP, and the economic
costs resulting from its uncertainty.
4. Permit external managers to attract foreign capital markets.
5. Supply the demand from the investment requirements of countries
with an aging population and its related growing pension burden.
6. Supply the global scarcity of investment-grade property.
7. Stimulate property and infrastructure development in the rural
areas and maximize the availability of sites and services.
8. Attract foreign direct investments into agrarian real estate and
create new markets in agricultural development.
B. To the people:
9. Enable small investors to make equity investments in large-scale
income-properties and encourage savings.
10. Make available funds to farmers, fishermen and migrant
workers to acquire self-liquidating investments in a professionally
managed agrarian-based property income stream.
11. Transfer ownership and control of privately-owned
agricultural property to public property and expand the real estate
market.
12. Create employment opportunities, livelihood opportunities
and increase in family income.
13. Require transparency and have corporate performance
monitored by the industry in a corporation wherein at least 90% of
its net income is distributed to its stockholders.
14. Limit to a maximum of fifty (50%) percent ownership of at
least five (5) independent investors in the REIT corporation.
15. Make available high-yielding investments and permit the
economies of scale benefit small investors.
16. Introduce capacity building and technology transfer in
agriculture and develop a labor market as an alternative to
overseas employment.
C. To the investor:
17. Provide an ideal exit strategy from a freehold or long-term
leasehold interests in agricultural and agro-industrial corporations
for local and foreign investments and for special purpose vehicles
and asset management companies.
18. Create a stable income stream with a long-term stock
appreciation.
19. Produce an inflation-hedged income stream.
20. List a low-risk (less volatile) investment stock.
21. Structure a more efficient ownership alternative for leased
assets.
22. Obtain windfall profits from the eventual infrastructure
development, town planning, re-zoning and sale of former
agricultural land into its highest and best use.
23. Enjoy in tandem the capital gain of real estate ownership of
the Agrarian REIT with the high-yield of a Business Trust.
24. Create a market from the relocation of the urban poor by the
attraction to a better lifestyle in the countryside
D. To the vendor:
25. Create liquidity from large chunky investments which is a
characteristic of real estate properties.
26. Improve the value of agricultural land.
27. Obtain tax exemptions in the corporate level.
28. Diversify an investment portfolio.
29. Develop an opportunity for sale-leaseback arrangements to
lighten balance sheets and improve returns on equity.
30. Release the non-productive cash in real estate and convert it
into an agent of production.
31. Develop non-productive land into its highest and best use.
32. Justify land conversions to what is truly socially beneficial.