The Securities and Exchange Commission (SEC) has approved the planned Initial Public Offerings (IPOs) of the Real Estate Investment Trusts (REITs) sponsored by Robinsons Land Corporation (RLC) and Megaworld Corporation with a combined value of 54 billion pesos.
The Commission En Banc has decided to make effective the registration statements of RL Commercial REIT, Inc. and MREIT, Inc. covering shares for the public offering for as much as P26.7 billion and P27.3 billion, respectively, under subject to their compliance with certain remaining requirements.
A REIT is a corporation formed primarily for the purpose of holding recurring real estate assets that generate income and provide regular returns to investors.
RL Commercial REIT plans to list a total of 9.95 billion common shares on the Main Board of the Philippine Stock Exchange (PSE). It will offer up to 3.34 billion ordinary shares held by RLC at a price of up to 7.31 pesos per share, with an over-allotment option of up to 305.1 million ordinary shares.
New investors will acquire 36.67% of the issued and outstanding common shares of RL Commercial REIT, while existing shareholders will retain the remaining 63.33%, if the company exercises the over-subscription option.
RL Commercial REIT will go public from August 31 to September 8 and will be listed on the PSE on September 20, based on the latest schedule submitted to the SEC.
RL Commercial REIT’s portfolio comprises 14 commercial real estate assets with an aggregate gross leasable area (GLA) of 425,315 square meters (mÂ²). Its commercial spaces are mainly leased for office purposes, which can be transformed into retail spaces as needed.
MREIT will put $ 2.53 billion on the PES Main Draw. For the public offering, 1.08 billion shares held by Megaworld are priced at P22.00 per share, with an over-allotment option of up to 161.7 million ordinary shares.
The IPO is expected to be August 23-27, in time for the REIT’s listing on the PSE on September 6, based on the latest schedule submitted to the SEC.
Assuming the full exercise of the over-allotment option, MREIT will have a free float of 49% after the IPO.
MREIT’s initial portfolio covers an overall GLA of 224,430.8 mÂ². across 10 properties, with an overall estimated value of approximately P49.32 billion. Its properties are spread across Metro Manila, primarily Taguig City and Quezon City, as well as Iloilo City.
Proceeds from the RL Commercial REIT and MREIT offerings will be reinvested in the Philippines. In accordance with the law, the two companies will also distribute to shareholders at least 90 percent of their annual distributable profit in the form of dividends.
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