Filinvest REIT Corp. (FILREIT) expects millennial and retail investors in the country, and investors tracking sustainability initiatives, to support the listing of its initial public offering (IPO) on Aug. 12.
The real estate investment trust (REIT) arm of major property developer Filinvest Land, Inc. (FLI) “has what we believe to be the largest office REIT portfolio with a green agenda. We intend to replicate our green initiative in office and township development, particularly in district cooling, to our other townships and introduce even more green initiatives in our developments,” said FLI president Josephine Gotianun-Yap.
FILREIT boasts of a portfolio that consists of 17 Grade A (highest quality) and LEED Gold certified office buildings, which include “green” or sustainability-themed features. Of these, 16 are in Northgate Cyberzone in Filinvest City in Alabang, a PEZA Special Economic Zone and IT park, and the first central business district in the country to receive Gold Certification from LEED® v4 for Neighborhood Development. Its buildings are cooled by the country’s largest district cooling system that reduces carbon emissions and energy consumption, the result of Filinvest’s partnership with Engie, a world leader in developing sustainable technology solutions.
According to a recent Jones Lang LaSalle (JLL) office property market study, certifications like LEED and Building for Ecologically Responsive Design Excellence check on the quality of materials used. How these all come together to improve building efficiency ultimately result in lower costs for tenants and boosted employee productivity and retention, JLL said.
FILREIT is aligned with the Philippine Stock Exchange’s (PSE) plan to introduce new stock indices to attract investors who favor specific investment themes, including environmental, social and governance (ESG) compliance. These so-called “green investors” look beyond the profitability metrics and instead track companies’ “triple bottom line” that focus on “people, planet, profit” when making business and investment decisions.
In addition to courting green investors, FILREIT is also banking on demand from “fresh” investors or those who are new to investing in the local bourse through online or retail trading. According to the recently released Stock Market Investor Profile (SMIP) report of the PSE, there were 1.4 million accounts in the stock market in 2020, up 13.7% year-on-year. Of this, retail investors accounted for about 97.9% while institutional investors owned 2.1%. For the third straight year, online accounts dominated the local bourse, cornering 67% of the total, while traditional accounts got a smaller 33% share.
FILREIT, formerly named Cyberzone Properties, Inc., expects to raise up to ₱12.6 billion from an initial public offering of 1,634,187,850 common shares at an offer price of ₱7.00 per share. New investors are expected to hold up to 36.74% of the issued and outstanding common shares, while existing shareholders are expected to hold 63.26%, assuming that the oversubscription option is fully exercised.
BPI Capital Corporation and UBS AG, Singapore Branch are the Joint Global Coordinators and Bookrunners for the initial public offering of FILREIT. BPI Capital Corporation is the Sole Local Coordinator and Local Lead Underwriter while UBS AG, Singapore Branch is the International Bookrunner. China Bank Capital Corporation is a Local Lead Underwriter while First Metro Investment Corporation and SB Capital Investment Corporation are Local Co-lead Underwriters.
For more information on FILREIT and its initial public offering, please visit http://www.filinvestreit.com or contact its Investor Relations Office located at the 23rd Floor, Axis Tower 1, Northgate Cyberzone, Filinvest Corporate City, Alabang, Muntinlupa City.
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