RL Commercial REIT Inc. 1, the real estate investment trust company owned by Robinsons Land Corp., plans to raise up to P26.6 billion from an initial public offering scheduled by the second half of 2021.
RLC said Monday in a disclosure to the stock exchange it filed an IPO application with the Securities and Exchange Commission to offer 3.34 million secondary shares with an over-allotment option for another 305.1 million shares.
The shares will be sold at a price of up to P7.31 apiece.
RLC REIT’s initial portfolio consists of 14 PEZA-accredited assets with over 400,000 square meters of gross leasable area across key Metro Manila central business districts and major commercial hubs outside Metro Manila.
These include the Exxa-Zeta Towers in Quezon City, Robinsons Summit Center in Makati City, Robinsons Cyberscape Alpha and Robinsons Cyberscape Beta in Pasig City and Robinsons Cybergate Center 2 and 3 in Mandaluyong City.
Net proceeds will be used by the RLC to fund real estate projects in accordance with its reinvestment plan.
The company engaged BPI Capital Corp. and UBS AG Singapore Branch as the joint global coordinators, lead managers and joint bookrunners for the offering.
CLSA Limited and Merrill Lynch (Singapore) Pte. Ltd. will serve as the international book runners while BPI Capital, China Bank Capital Corp., First Metro Investment Corp. and PNB Capital and Investment Corp. will be the local underwriters for the proposed offering.
RLC is the fourth company to file for an REIT offering, after AREIT Inc. of Ayala Land Inc. and DDMP REIT Inc. of DoubleDragon Properties Corp. which successfully listed on the main board of the Philippine Stock exchange and Filinvest REIT of Filinvest Land Inc. which has a pending P14.9-billion IPO application with the SEC.
REIT refers to a corporation that primarily invests in income-generating real estate such as office spaces, shopping malls, service apartments, hotels, hospitals and warehouses.
REITs enable investors to participate in lucrative property portfolio investments that provide a steady stream of dividends investment returns and prospects for capital appreciation.
As an asset class, REITs are required to declare dividends of at least 90 percent of its distributable income to shareholders.