PSE approves Robinsons Land's REIT IPO

Published August 11, 2021, 4:01 PM

by James A. Loyola

The Philippine Stock Exchange’s Board of Directors has approved the listing of the shares of RL Commercial REIT, Inc. (RCR) paving the way for the real estate investment trust’s initial public offering worth up to P26.7 billion.

Upon its target listing, RCR is poised to be the largest REIT by portfolio valuation and asset size, longest in land lease tenure, and most geographically diversified office REIT in the country.

Robinsons Summit Center

RCR is planning to offer up to 3.34 billion common shares at a maximum offer price of P7.31 per share, with an over-allotment option of up to 305 million common shares. At the maximum offer price, RCR will have the largest market capitalization.

Based on the latest timetable, RCR’s offer period will run from August 25 to September 3, 2021, with target listing date on September 14, 2021. The offer shares will be traded on the PSE main board under the trading symbol “RCR.”

RCR is backed by its sponsor, Robinsons Land Corporation (RLC), one of the leading real estate and property developers in the country with a track record of 41 years in the industry.


The full backing of the sponsor was further demonstrated by RLC extending land leases of as long as 99 years to RCR. As having the longest land lease tenure among Philippine REITs to date, this provides long-term sustainability and predictability to RCR.

The company’s initial portfolio consists of 14 commercial real estate assets located in Central Business Districts across Metro Manila such as in Makati, BGC and Ortigas, Quezon City and Mandaluyong and in the key cities of Naga, Tarlac, Cebu, and Davao, making it the most geographically diverse Philippine REIT with a total gross leasable area (GLA) of 425,315 sqm.

The portfolio has a committed occupancy rate of 99 percent. Santos Knight Frank’s appraisal value of the assets is P73.9 billion as of June 30, 2021.

Potential additions to RCR’s portfolio in the future are RLC’s Cyberscape Gamma in Ortigas and/or Robinsons Cybergate Center 1 in Mandaluyong, subject of the recent Memorandum of Understanding (MOU) entered by RCR and RLC, according to the latest REIT Plan available in the RCR website.

Including the Cyberscape Gamma and the Robinsons Cybergate Center 1, RLC has approximately 204,000sqm GLA in existing office assets, 68,000sqm GLA of business process outsourcing (BPO) spaces located within RLC’s various commercial centers as well as 150,000sqm GLA of properties 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. All Any potential infusions are subject to the fund manager’s recommendations, market conditions, the requirements of RCR’s business and the approval of the relevant regulatory bodies.

The office tenants of RCR properties are primarily engaged in essential services like information technology and business process management (IT-BPM). The BPO industry is the core of RCR’s tenant base.

“The principal strategy of RLC REIT is to invest on a long-term basis in a diversified portfolio of income-producing commercial real estate assets, leased primarily for office purposes and strategically located in major CBDs and key cities and urban areas across the Philippines,” the company stated in the REIT Plan.