The Securities and Exchange Commission (SEC) has approved the planned initial public offerings (IPO) of real estate investment trusts (REIT) sponsored by Robinsons Land Corporation (RLC) and Megaworld Corporation with a combined value of P54 billion.
The Commission En Banc resolved to render effective the registration statements of RL Commercial REIT, Inc. and MREIT, Inc. covering shares for public offering for as much as P26.7 billion and P27.3 billion, respectively, subject to their compliance with certain remaining requirements.
A REIT is a stock corporation established principally for the purpose of owning recurring income-generating real estate assets that provides a regular return 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 common shares owned by RLC at a price of up to P7.31 per share, with an overallotment option of up to 305.1 million common shares.
New investors will corner 36.67 percent of RL Commercial REIT’s issued and outstanding common shares, while existing shareholders will retain the remaining 63.33 percent, should the company exercise the oversubscription option.
RL Commercial REIT will conduct the IPO from August 31 to September 8 and list on the PSE on September 20, based on the latest timetable submitted to the SEC.
RL Commercial REIT’s portfolio includes 14 commercial real estate assets with an aggregate gross leasable area (GLA) of 425,315 square meters (sq.m.) Its commercial spaces are primarily leased for office purposes, which may be transformed into retail spaces as required.
MREIT will list 2.53 billion on the Main Board of the PSE. For public offering are 1.08 billion shares ownwed by Megaworld priced at up to P22.00 per share, with an overallotment option of up to 161.7 million common shares.
The IPO is expected to run from August 23 to 27 in time for the REIT’s listing on the PSE on September 6, based on the latest timetable submitted to the SEC.
Assuming the full exercise of the overallotment option, MREIT will have a public float of 49 percent post-IPO.
MREIT’s initial portfolio covers an aggregate GLA of 224,430.8 sq.m. across 10 properties, with an aggregate appraised value of about P49.32 billion. Its properties are spread out across Metro Manila, primarily in Taguig City and Quezon City, as well as in Iloilo City.
Proceeds from the offerings of RL Commercial REIT and MREIT shall be reinvested in the Philippines. As mandated by law, both companies shall also distribute to shareholders at least 90 percent of their annual distributable income as dividends.