Robinsons Land Corp.may raise as much as P23.5 billion from the sale of shares in its real estate investment trust (REIT), RL Commercial REIT Inc. (RCR).
As a result, the REIT unit boasts of the “largest” capitalization among listed REITs.
This follows after the company priced its initial public offering (IPO) at P6.45 per share.
RCR’s offer comprises 3.34 billion common shares with an overallotment option of up to 305 million common shares to be sold by Robinsons Land.
“At the offer price, RCR will have the largest market capitalization of P64.2 billion ($1.3 billion) among listed REIT companies,” the company said.
RCR’s initial portfolio boasts of 425,315 square meters (sq.m.) in total gross leasable area (GLA) worth P73.9 billion as of end-June 2021.
“This represents a record high portfolio size by GLA and appraised value among Philippine REITs that have gone public,” the company said.
Consisting of 14 commercial real estate assets, RCR properties can be found in major central business districts across Metro Manila such as in Makati, Bonifacio Global City, Ortigas, Quezon City and Mandaluyong.
“It is also present in key cities and urban areas across the country such as Naga, Tarlac, Cebu, and Davao–the widest geographical coverage among local REITs,” RCR said.
The company added it enjoys “the full support of Robinsons Land” and has access to its “high quality expansion pipeline.”
“As a starting point, Robinsons Land and RCR entered in a memorandum of understanding for the potential future acquisition of 40,000 sq.m. to 100,000 sq.m. of gross leasable area within the next 18 months. Robinsons Land has existing office assets, business process outsourcing spaces located within various commercial centers, as well as projects that are in various stages of construction,” it said.
“Overall, Robinsons Land’s potential pipeline for infusions to RCR amounts to a total GLA of approximately 422,000 sq.m. over time. Any potential infusions are subject to the fund manager’s recommendations, market conditions, the requirements of RCR’s business, RCR’s board recommendations and the approval of the relevant regulatory bodies,” it added.
RCR’s IPO will run from August 25 to September 3, 2021, with a tentative listing date at the Philippine Stock Exchange on September 14.
BPI Capital Corp. and UBS AG Singapore Branch are the joint global coordinators, lead managers and joint bookrunners for the offer. BPI Capital is the lead local underwriter and UBS AG Singapore Branch is the lead international bookrunner for the offer.
