Robinsons Land infusing P34 billion assets to RCR, expands tie-up with Meralco

MANILA, Philippines —  Robinsons Land Corp. (RLC), the real estate firm of the Gokongwei family, plans to inject P33.92 billion worth of assets to its real estate investment trust unit RL Commercial REIT Inc. (RCR) to diversify the latter’s portfolio.

In a stock exchange filing, RCR and RLC said they approved a planned property-for-share swap consisting of 13 commercial assets.

The proposed transaction will involve the issuance by RCR of 4.99 billion primary common shares at P6.80 apiece in exchange for 11 malls and two office towers.

“We are pleased to announce RCR’s plans to conduct a property-for-share swap for prime malls and offices. Our fund manager, RL Fund Management Inc., has identified the assets that will maximize the additional value delivered to our shareholders,” RCR president and CEO Jericho Go said.

Go said the planned asset infusion would diversify RCR’s predominantly office asset portfolio with the inclusion of mall assets.

“This is in line with RCR’s commitment to shareholders to continuously grow the company,” he said.

The 11 malls totaling 278,526 square meters of leasable space under the planned transaction will include Robinsons Malls in Novaliches, Cainta, Luisita, Cabanatuan, Lipa, Sta. Rosa, Imus, Los Baños, Palawan, Ormoc and Cybergate Davao.

The two office assets totaling 68,803 square meters of leasable space are Giga Tower in the Bridgetowne Destination Estate in Quezon City and Cybergate Delta 2 in Davao City.

RLC said the assets were selected based on RCR’s investment criteria of maximizing dividend yield accretion through the infusion of high-quality commercial properties that complement the company’s existing portfolio of 16 premium assets.

The assets will increase the total gross leasable space of RCR by an additional 347,329 sqm to 827,808 sqm.

Further, RCR will remain the Philippine REIT with the widest geographical reach with assets in 18 key locations.

RLC said the property-for-share swap is subject to the approval of pertinent regulatory bodies, which it hopes to secure within the year.

It will likewise be presented for approval in RCR’s special stockholders’ meeting on July 15, 2024.

RCR will execute the deed of assignment with RLC and submit the application to the Securities and Exchange Commission after obtaining stockholder approval.

RLC’s investment portfolio after the infusion will include approximately 1.4 million sqm of leasable mall spaces, approximately 253,00 sqm of remaining leasable office spaces, 26 hotels with a total of 4,243 room keys and 244,000 sqm of leasable logistics facilities.

Meanwhile, RLC has expanded its partnership with Pangilinan-led Manila Electric Co. (Meralco) to energize its commercial and residential projects.

With the partnership, Meralco will support the power requirements of the real estate firm’s existing and future developments by ensuring the timely delivery of reliable electric services.

The RLC projects set to be energized include the Sierra Valley in Rizal and The Jewel in Mandaluyong, both of which are expected to be operational by 2026.

Key officials of the distribution utility recently met with RLC executives to present a comprehensive development plan that includes building two new substations in Rizal and Mandaluyong.

“This partnership will enable us to provide our customers and residents with energy-efficient solutions that are both environmentally friendly and economically viable,” RLC chairman, president and CEO Lance Gokongwei said.

In the past five years, Meralco said its tie-up with the property developer spanned operational efficiencies and sustainability initiatives, including the solar photovoltaic installation for Nustar Resort and Casino.