RCR set to be Philippines largest REIT company with price at P6.45/share
RL Commercial REIT, Inc. (RCR) has set the final offer price of its initial public offering (IPO) at P6.45 per share, according to PSE notice. RCR is backed by its sponsor, Robinsons Land Corporation (RLC), one of the leading real estate and property developers in the country.
Largest REIT by market capitalization, portfolio valuation, and asset size
The RCR offer comprises 3.34 billion common shares with an overallotment option of up to 305 million common shares to be sold by RLC. At the offer price, RCR will have the largest market capitalization of Php64.2B (~USD1.3B) among listed REIT companies.
RCR’s initial portfolio also boasts of a total gross leasable area (GLA) of 425,315 sqm with an aggregate appraised value of Php 73.9B as of June 30, 2021. This represents a record high portfolio size by GLA and appraised value among Philippine REITs that have gone public.
Widest geographical coverage
Consisting of 14 commercial real estate assets, RCR properties can be found in major Central Business Districts across Metro Manila such as in Makati, BGC, Ortigas, Quezon City and Mandaluyong. It is also present in key cities and urban areas across the country such as Naga, Tarlac, Cebu, and Davao–the widest geographical coverage among local REITs.
RCR enjoys the full support of RLC and it has access to the Sponsor’s high quality expansion pipeline. As a starting point, RLC and RCR entered in a Memorandum of Understanding (MOU) for the potential future acquisition of 40,000 sqm to 100,000 sqm of gross leasable area within the next 18 months. RLC has existing office assets, business process outsourcing (BPO) spaces located within RLC’s various commercial centers, as well as projects that are in various stages of construction. Overall, RLC’s potential pipeline for infusions to RCR amounts to a total GLA of approximately 422,000 sqm over time. Any potential infusions are subject to the fund manager’s recommendations, market conditions, the requirements of RCR’s business, RCR’s board recommendations and the approval of the relevant regulatory bodies.
Longest land lease tenure
The full backing of the sponsor was further demonstrated by RLC extending land leases of as long as 99 years to RCR, making it the REIT with the longest land lease tenure among Philippine REITs to date. This provides long term sustainability and predictability to RCR.
RCR’s assets have also consistently maintained high occupancy and tenant rates.
Based on the latest timetable indicated in the preliminary REIT Plan uploaded at the Company’s website, RCR’s proposed offer period will run from August 25 to September 3, 2021, and its tentative listing date on The Philippine Stock Exchange, Inc. will be on September 14, 2021.
Proceeds from the offer will be received by RLC as the selling shareholder and will be reinvested according to the Reinvestment Plan detailed in the REIT Plan, available at https://www.rlcommercialreit.com.ph/investor-relations/reit-offering.
BPI Capital Corporation and UBS AG Singapore Branch are the Joint Global Coordinators, Lead Managers and Joint Bookrunners for the Offer. BPI Capital Corporation is the Lead Local Underwriter and UBS AG Singapore Branch is the Lead International Bookrunner for the Offer.
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