Robinsons Land REIT IPO gets PSE nod

The initial public offering (IPO) of the real estate investment trust (REIT) sponsored by Robinsons Land Corporation has secured the go signal from the Philippine Stock Exchange (PSE).

In a statement on Thursday, RL Commercial REIT Inc. said it obtained the PSE’s board approval for the listing of its IPO of up to P26.7 billion.

It said the PSE board cleared RL Commercial REIT’s proposed offering of up to 3.34 billion common shares at a maximum offer price of P7.31 per share, with an over-allotment option of up to 305 million common shares.

At the maximum offer price, the company will have the largest market capitalization of P72.7 billion.

Based on the latest timetable, RL Commercial REIT’s offer period will run from August 25 to September 3, 2021, with target listing date on September 14, 2021.

Upon its target listing, RL Commercial REIT is poised to be the largest REIT by portfolio valuation and asset size, longest in land lease tenure, and most geographically diversified office REIT in the country.

The offer shares will be traded on the PSE main board under the trading symbol “RCR.”

A REIT is a stock corporation established principally for the purpose of owning 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.

“The full backing of the sponsor (Robinson Land) was further demonstrated by RLC extending land leases of as long as 99 years to RL Commercial REIT. As having the longest land lease tenure among Philippine REITs to date, this provides long term sustainability and predictability,” the company said.

The company’s initial portfolio consists of 14 commercial real estate assets located in Central Business Districts across Metro Manila such as in Makati, BGC and Ortigas, Quezon City and Mandaluyong and in the key cities of Naga, Tarlac, Cebu, and Davao, making it the most geographically diverse Philippine REIT. with a total gross leasable area (GLA) of 425,315 square meters.

The portfolio has a committed occupancy rate of 99%.

The office tenants of RL Commercial REIT’s properties are primarily engaged in essential services like information technology and business process management (IT-BPM).

“The principal strategy of RLC REIT is to invest on a long-term basis in a diversified portfolio of income-producing commercial real estate assets, leased primarily for office purposes and strategically located in major CBDs and key cities and urban areas across the Philippines,” the company stated in the REIT Plan. — BM, GMA News