RL Commercial REIT Inc. (RCR) made history last Tuesday as the Philippines’ largest publicly-listed real estate investment trust (REIT) to debut on the Philippine Stock Exchange (PSE).
Its listing opened with a market capitalization of P64.2 billion, which is the largest among Philippine REITs. It has the largest portfolio valuation at P73.9 billion, and the biggest asset size with a gross leasable area (GLA) of 425,315 square meters.
The virtual bell ringing ceremony of the PSE was led by RCR chairman Frederick Go. He was joined by JG Summit chairman James Go, Robinsons Land Corp. (RLC) chairman Lance Gokongwei, RCR president Jericho Go, RCR treasurer Kerwin Tan, Securities and Exchange Commission chairman Emilio Aquino and Finance Secretary Carlos Dominguez III.
“We are extremely grateful for the overwhelming response of the capital markets to our landmark offering. We would like to thank the investing public for their continued trust and support to the Robinsons Land brand. We appreciate how our reputation and track record over the years have resulted in this expression of confidence in RCR’s IPO,” Frederick Go said.
Record-breaking
RCR broke records with its PSE listing, offering the widest reach with its extensive geographical coverage. Over 94 percent of its initial portfolio is spread across the central business districts (CBD) of Makati, BGC and Ortigas. Others are located in key cities of Metro Manila such as Mandaluyong and Quezon City, while the rest are in high-growth commercial hubs in Metro Cebu, Metro Davao, Naga, and Tarlac.
Its leasable area is expected to grow through the full support of RLC, the majority owner and sponsor of RCR. RLC is prepared to infuse one to two assets per year into the REIT, with concrete plans to inject 40,000 to 100,000 square meters of GLA within the next 18 months.
As a starting point, RLC and RCR had entered into a Memorandum of Understanding in July, setting out the parties’ agreement for the potential acquisition of Cyberscape Gamma and/or Robinsons Cybergate Center 1. These two assets have a combined GLA of 72,100 sqm, equivalent to approximately 17 percent of the portfolio’s total GLA of 425,315 sqm.
Cyberscape Gamma is a 37-storey PEZA-registered Grade A office development located within the Ortigas CBD, with about 45,000 sqm of GLA. Meanwhile, Robinsons Cybergate Center 1 is an 18-storey PEZA-registered Grade A office building located within the Robinsons Cybergate Complex in Mandaluyong City, with 27,300 sqm of GLA.
On top of this, RLC has existing office assets, business process outsourcing (BPO) spaces located within its various commercial centers, as well as projects that are in various stages of construction. Overall, RLC’s potential pipeline for infusions to RCR amounts to a total GLA of approximately 422,000 sqm over time.
All potential infusions are subject to the fund manager’s recommendations, market conditions, the requirements of RCR’s business, and the approval of the relevant regulatory bodies.
Many of RCR’s assets have land leases for as long as 99 years, bringing the portfolio to an 89-year average land lease. This cements RCR’s position as the REIT with the longest land lease tenure. Strong relationships with its tenants have resulted in long-term leases and high occupancy rates across all its buildings.
BPI Capital Corp. and UBS AG Singapore Branch served as the joint global coordinators, lead managers, and joint bookrunners for the Offer. BPI Capital Corp.also served as the lead local underwriter and UBS AG Singapore Branch, as the lead international bookrunner.
China Bank Capital Corp., First Metro Investment Corp., and PNB Capital and Investment Corp. were also tapped as local underwriters, while CLSA Limited and Merill Lynch (Singapore) Pte. Ltd, are the international bookrunners. SB Capital Investment Corp. was likewise a participating underwriter.