Robinsons Land’s REIT sets IPO price at P6.45 per share

MANILA, Philippines — The Gokongwei Group’s soon-to-list real estate investment trust RL Commercial REIT Inc. (RCR) has set the final price of its initial public offering at P6.45 per share.

At this price, RCR will raise P23.5 billion instead of P26.7 billion as indicated in its initial filing.

The Philippine Stock Exchange (PSE) has already cleared RCR’s proposed offering of up to 3.34 billion common shares with an over-allotment option of up to 305 million common shares.

Based on the latest timetable, RCR’s offer period will run from Aug. 25 to Sept. 3, with target listing date on Sept. 14.

RCR is backed by its sponsor, Robinsons Land Corp. (RLC), one of the leading real estate and property developers in the country with a track record of 41 years in the industry.

As a demonstration of the full backing of RLC as sponsor, RLC extended land leases of as long as 99 years to RCR.

As having the longest land lease tenure among Philippine REITs to date, this provides long term sustainability and predictability to RCR.

RCR has a portfolio of commercial assets in different locations, said RLC president and CEO Frederick Go.

“We are in nine locations – Makati, Taguig, Quezon City, Pasig, Mandaluyong and Cebu, Tarlac, Naga and Davao,” Go told The STAR.

The 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 of 425,315 square meters.

The portfolio has a committed occupancy rate of 99 percent and the value of the assets is at P73.9 billion, according to Santos Knight Frank’s appraisal value.

Potential additions to RCR’s portfolio in the future are RLC’s Cyberscape Gamma in Ortigas and/or Robinsons Cybergate Center 1 in Mandaluyong, according to the latest REIT plan.

Including the Cyberscape Gamma and the Robinsons Cybergate Center 1, RLC has approximately 204,000 sqm GLA in existing office assets, 68,000sqm GLA of business process outsourcing (BPO) spaces located within RLC’s various commercial centers, as well as 150,000 sqm GLA of properties that are in various stages of construction.

Overall, RLC’s potential pipeline for infusions to RCR will increase total GLA by 422,000 sqm over time.