RL COMMERCIAL REIT Inc. (RCR) has set the final offer price of its initial public offering (IPO) at P6.45 per share, according to the Philippine Stock Exchange (PSE) notice.
RCR is backed by its sponsor, Robinsons Land Corp. (RLC), one of the leading real estate and property developers in the country.
The RCR offer comprises 3.34 billion common shares with an over-allotment 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 P64.2 billion among listed REIT companies.
RCR’s initial portfolio also boasts of a total gross leasable area (GLA) of 425,315 square meters (sq.m.) with an aggregate appraised value of P73.9 billion as of June 30, 2021.
This represents a record high portfolio size by GLA and appraised value among Philippine REITs that have gone public.
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 for the potential future acquisition of 40,000 sq.m. to 100,000 sq.m. of gross leasable area within the next 18 months.
RLC has existing office assets, business process management 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 sq.m. 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 firm’s website, RCR’s proposed offer period will run from Aug. 25 to Sept. 3, 2021, and its tentative listing date on the PSE will be on Sept. 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 Corp. and UBS AG Singapore Branch are the joint global coordinators, lead managers and joint bookrunners for the offer. BPI Capital Corp. is the lead local underwriter and UBS AG Singapore Branch is the lead international bookrunner for the offer. (PR)