Robinsons Land Corp. (RLC) said Friday it raised P8.5 billion from sale of shares in real estate investment trust firm RL Commercial REIT Inc. (RCR).
RLC said in a disclosure to the stock exchange Friday it sold 1.725 billion RCR shares at P4.92 apiece, via an overnight block placement.
The offer price represents a 5.2-percent discount to RCR’s closing of P5.19 Thursday.
“The oversubscribed book is a testament to the strength of RLC’s brand. We are thankful to the institutional investors for their continued trust and confidence in RLC’s reputation,” said RLC chairman and chief executive Lance Gokongwei.
Gokongwei said as the majority shareholder of RCR, RLC would continuously fuel the growth of the company by infusing yield-accretive and high-quality assets to complement the existing predominantly-office asset portfolio of RCR to maximize both RLC and RCR’s shareholder value.
“We envision RCR to be the bellwether REIT in the Philippine real estate landscape,” said Gokongwei said.
RLC intends to infuse about P25 billion worth of assets in RCR, subject to prevailing market conditions and after obtaining the necessary approvals.
These will increase RCR’s total gross leasable area by 60 percent this year.
RLC said it plans to infuse other asset classes aside from its offices, which include malls, hotels and warehouses into RCR that meet RCR’s investment criteria.
RLC’s investment portfolio includes 1.6 million square meters (sq. m.) of leasable mall spaces, 270,000 sq. m. of remaining leasable office spaces, 26 hotels with a total of 4,243 room keys and 227,000 sq. m. of leasable logistics facilities.
RLC said the potential infusion of various asset classes in several key cities across the country would boost RCR’s revenue streams and ensure its continuous growth.