The Gokongwei Group and the group of Andrew Tan received the greenlight from the Securities and Exchange Commission (SEC) to list their respective REITs on the Philippine Stock Exchange (PSE).
In its meeting on August 3, the Commission En Banc approved the planned initial public offerings (IPO) of the REITs or real estate investment trusts sponsored by the Gokongwei’s Robinsons Land Corp. (RLC) and Andrew Tan-led Megaworld Corp.
RL Commercial REIT and MREIT will add to the growing list of REITs in the market following the debut of Ayala Land’s AREIT Inc. of Ayala Land, Inc. and Double Dragon Properties’ DDMP REIT Inc. as well as the ongoing REIT offering of Filinvest Land, Inc.’s Filinvest REIT Corp.
Robinsons’ RL Commercial REIT Inc. and Megaworld’s MREIT Inc. will offer as much as P26.7 billion and P27.3 billion worth of shares, respectively.
REITs are companies that own income-generating real estate assets such as apartment buildings, office buildings, medical facilities, hospitals, hotels, resorts, highways, warehouses, shopping centers, railroads, among others.
It is a type of investment instrument that provides a return to investors derived from rental income of the underlying real estate asset.
For RL Commercial REIT Inc., its registration statement covers 9.9 billion common shares for listing on the Philippine Stock Exchange (PSE).
It will offer up to 3.3 billion secondary common shares at a price of up to P7.31 per share, with an over-allotment option of up to 305.1 million common shares, to raise up to P25.88 billion in net proceeds should the overallotment be fully exercised.
Based on the latest timetable submitted to the SEC, RL Commercial REIT will conduct the IPO from August 31 to September 8 and list on the PSE on September 20.
RL Commercial REIT’s portfolio includes 14 commercial real estate assets with an aggregate gross leasable area (GLA) of 425,315 square meters (sq.m.) Its commercial spaces are primarily leased for office purposes, which may be transformed into retail spaces as required.
MREIT’s registration statement, meanwhile, covers 2.5 billion common shares for listing on the PSE.
To be offered to the public are 1 billion secondary offer shares priced at up to P22 per share, with an overallotment option of up to 161.7 million common shares.
Megaworld estimates to generate up to P26.3 billion in proceeds should the overallotment option be utilized.
The IPO is expected to run from August 23 to 27 in time for the REIT’s listing on the PSE on September 6, based on the latest timetable submitted to the SEC.
MREIT’s initial portfolio covers an aggregate GLA of 224,430.8 sq.m. across 10 properties, with an aggregate appraised value of about P49.32 billion. Its properties are spread out across Metro Manila, primarily in Taguig City and Quezon City, as well as in Iloilo City, according to its filing.