The Philippine Stock Exchange (PSE) has approved an initial public offering worth as much as P26.7 billion to be launched this month by RL Commercial REIT Corp. (RCR), the real estate investment trust (REIT) sponsored by Robinsons Land Corp. (RLC).
Based on the latest timetable, RCR’s offer period would run from Aug. 25 to Sept. 3 this year, with listing on the PSE’s main board slated for Sept. 14 under the trading symbol “RCR,” the company said in a statement. Upon listing, RCR expects it would be the largest REIT so far by portfolio valuation and asset size, longest in land lease tenure and most geographically diversified office REIT in the country.
The PSE board cleared RCR’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, RCR expects to have the largest market capitalization among publicly-listed REITs.
This is among the P55 billion worth of equity deals in the PSE’s pipeline this August, which also includes Megaworld Corp.-sponsored MREIT Inc., which is raising up to P27.3 billion, and Apollo Global Capital Inc., which is planning a follow-on offering worth about P988 million.
RCR’s initial portfolio consists of 14 business process outsourcing-focused commercial real estate assets in central business districts across Metro Manila such as Makati, Bonifacio Global City, Ortigas, Quezon City and Mandaluyong and in the cities of Naga, Tarlac, Cebu and Davao. This footprint is seen to make it the “most geographically diverse” REIT to come to market.
RCR’s current portfolio has a total gross leasable area (GLA) of 425,315 square meters, of committed occupancy rate is 99 percent. Property consulting firm Santos Knight Frank’s appraisal value of the assets is P73.9 billion as of end-June this year. On a pro forma basis, rental income of these properties amounted to P3.94 billion while pro forma gross revenues amounted to P6.08 billion in 2020.
Other assets that may be injected to RCR’s portfolio in the future are RLC’s Cyberscape Gamma in Ortigas and/or Robinsons Cybergate Center 1 in Mandaluyong, based on the latest REIT plan.
Including the Cyberscape Gamma and the Robinsons Cybergate Center 1, RLC has about 204,000 square meters of GLA in existing office assets, 68,000 square meters in GLA of business process outsourcing space located in various commercial centers as well as 150,000 square meters of GLA of properties in various stages of construction.
By: Doris Dumlao-Abadilla
Philippine Daily Inquirer
12 August 2021