Citicore subsidiary secures approvals on REIT listing

Published January 19, 2022, 4:06 PM

by Myrna M. Velasco

Citicore REIT Corporation (CREIT), a subsidiary of Megawide-affiliated Citicore Power Inc., has secured the approvals of the Securities and Exchange Commission (SEC) and the Philippine Stock Exchange (PSE), for its real estate investment trust (REIT) listing which will be a trailblazing offer for the energy sector.

The company’s registration statement (RS) for the initial public offering (IPO) was filed on August 18, 2021; and the SEC go-signal was granted on January 13 this year – and that was reckoned on the applicant-firm’s updated third quarter financial and operating results

Subsequently, CREIT indicated that it also cornered the approval of the PSE for its listing on January 14 this year- and that’s based on its registration statement filing reflecting financial and operating performance within first half of last year.

Oliver Tan, president and CEO of CREIT, announced that “our application both to the SEC and the PSE for the first energy REIT has been approved,” with the company adding that “CREIT expects to offer a stable dividend payout in accordance with the REIT Law.”

As culled from the PSE approval, the proposed offer period for CREIT will be from February 2-8 this year; and target listing will be on February 17.

Tapped as issue manager for the offering is Unicapital Inc; while joint global coordinators are BDO Capital & Investment Corporation and Unicapital.

Additionally, PNB Capital and Investment Corporation and Investment & Capital Corporation of the Philippines (ICCP) will act as local underwriters; while CIMB Investment Bank Bhd and CLSA Limited will be the international bookrunners.

Tan expounded this landmark REIT listing offers “an alternative asset class combining the benefits of a stable and sustainable investment for the environment, our communities and our children’s future.”

Renewable energy, which is the core business of Citicore, is a type of infrastructure-related asset that can yield regular stream of income to the investors, hence, it was greenlighted for REIT listing by government regulators.

Being the first company to undertake REIT listing for the energy sector, Tan indicated their offering could “pave the way for diversification of REIT products, ultimately benefitting the investing public.”

Tan noted their RE company which is targeting portfolio growth of up to 1,500 megawatts in the near term, “offers a unique value differentiation, with a green asset portfolio anchored on investing in and for the future.”

He stressed “this business model, we believe, is cycle-resistant as solar power generation is an essential industry – further supported by government programs and has a clear plan for long-term growth.”

 
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