RLC mulls $300-million public offer of REIT papers

MANILA, Philippines - Robinsons Land Corp., the property arm of listed Gokongwei flagship firm JG Summit Holdings Inc., is reportedly planning a $300-million initial public offering of real estate investment trust (REIT) certificates in the second half of the year.

Sources said RLC has mandated American financial services giant Citi as its financial adviser on the planned offering of REITs, an instrument that trades like a stock on the major exchanges and invests in real estate directly, either through properties or mortgages.

RLC with assets that provide recurring income, including shopping malls, hotel and office buildings, is waiting for the government to issue the implementing rules and regulations on the recently-passed REIT Law.

REITs have been widely adopted in the United States, Australia and more recently Japan, Singapore, Hong Kong and Taiwan and RLC wants to take advantage of the significant tax benefits of listing REITs.

Sources said RLC, the second largest shopping mall developer in the country with 29 malls nationwide, is looking at a $1 billion market capitalization for its REITs.

RLC is spending up to P9 billion this year to build new shopping malls, residential buildings and units, office buildings and hotels.

RETTs are listed stock corporations that will provide small and large investors with options to participate directly in the ownership, financing and management of large-scale real-estate projects at affordable rates of investment.