Robinsons Land REIT secures SEC OK to sell shares

The real estate investment trust (REIT) sponsored by Robinsons Land Corporation, RL Commercial REIT Inc., said Wednesday it has received a permit to sell from the Securities and Exchange Commission (SEC) for its initial public offering (IPO).

The SEC nod follows the go signal from the Philippine Stock Exchange (PSE) for RL Commercial REIT’s listing of its proposed offering of up to 3.34 billion common shares, with an over-allotment option of up to 305 million common shares. 

In a statement, RL Commercial REIT said total market cap will be P64.2 billion at its IPO price of Php6.45 per share.

The offer period is slated to run from August 25 to September 3, 2021.

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.

Among existing and disclosed upcoming Philippine REITs, RL Commercial REIT said it is the largest in terms of market capitalization and portfolio valuation and biggest in asset size.

It also has the widest geographical coverage and longest land lease tenures.

The company’s initial portfolio consists of 14 commercial real estate assets with a total gross leasable area (GLA) of 425,315 square meters and an independently appraised value of P73.9 billion as of June 30, 2021.

RL Commercial REIT said its buildings are located in major central business districts across Metro Manila, such as Makati, BGC, Ortigas, Quezon City, and Mandaluyong.

The company also has presence in key cities and urban areas across the country, such as Metro Cebu, Metro Davao, Naga and Tarlac.

“The company enjoys the full support of its Sponsor, Robinsons Land Corporation (RLC), who extended land leases to RL Commercial REIT for as long as 99 years,” it said.

In terms of dividends, the company said it will comply with the REIT Law which mandates the annual distribution of at least 90% of its distributable net income to its shareholders, adjusted in accordance with generally accepted accounting standards.

At the IPO price of P6.45 per share, the company said its implied 2022 dividend yield is 5.96%.

BPI Capital Corporation and UBS AG Singapore Branch are the joint global coordinators, lead managers, and joint bookrunners for the offer.

BPI Capital Corporation is the lead local underwriter and UBS AG Singapore Branch is the lead international bookrunner for the offer.

China Bank Capital Corporation, First Metro Investment Corporation, and PNB Capital and Investment Corporation were also tapped as local underwriters, while CLSA Limited and Merrill Lynch (Singapore) Pte. Ltd, are the international bookrunners.

SB Capital Investment Corporation is likewise a participating underwriter. — BM, GMA News