VistaREIT Inc., the commercial real estate investment trust company of Vista Land & Lifescapes Inc. of the Villar Group, plans to raise up to P9.18 billion from an initial public offering.
Vista Land is a publicly-listed property development company and the largest homebuilder led by the Villar family. It has a majority 88.34-percent stake in Vistamalls Inc.
VREIT said in a statement over the weekend it filed with the Securities and Exchange Commission an application to sell up to 3.33 billion in secondary common shares, with an over-allotment option for another 333.75 million secondary common shares at P2.50 apiece.
VREIT said it would have an initial portfolio of 10 community malls and two office buildings with an aggregate gross leasable area of 256,404 square meters.
The malls are located in Vista Land’s integrated developments, which serve as a one-stop shop for its residents in Las Piñas City, Bacoor City, General Trias City, Imus City, Tanza, Antipolo City, San Jose Del Monte City, San Fernando City and Talisay City in Cebu. The office buildings are located in Taguig City and Bacoor City.
The company is set to be the flagship office and mall REIT of Vista Land. It aims to be among the leading diversified commercial REITs in the Philippines in terms of portfolio, profitability, growth, sustainability and dividend yield.
VREIT said over the last three years, the properties enjoyed consistently high occupancy rates of 93 percent to 100 percent of their respective GLAs. The properties also delivered sustained rental income growth even at the height of the pandemic given the essential nature of its mall tenants.
VREIT tapped China Bank Capital Corp. as issue coordinator, and together with BDO Capital & Investment Corp., PNB Capital and Investment Corp., RCBC Capital Corp., and SB Capital Investment Corp. as joint lead underwriters and bookrunners.
Abacus Capital and Investment Corp. was also mandated as a participating underwriter.
Vista Land’s subsidiaries include Masterpiece Asia Properties Inc., Manuela Corp., Communities Pampanga Inc., Crown Asia Properties Inc. and Vista Residences, Inc.
The offer shares will be listed and traded on the main board of The Philippine Stock Exchange under the trading symbol “VREIT”.
VREIT will be the seventh REIT company to list on the local bourse. The other companies that had successful market debut and listing are Ayala Land Inc.’s AREIT Inc., DoubleDragon’s DDMP Inc., Filinvest REIT Corp., Megaworld Corp.’s MREIT, Robinsons Land Corp.’s RL Commercial REIT Inc. and Citicore Energy REIT Corp.