Filinvest Land Inc. said over the weekend it expects the resilience and growth of the business process outsourcing sector to drive the success of its maiden office real estate investment trust offering next month.
FLI said in a statement prime multinational business process outsourcing companies accounted for 88.4 percent of the occupied gross leasable area of its planned 17-building real estate investment trust portfolio as of end-March, while online gaming tenants occupied 2.8 percent.
Non-BPO offices and retail tenants comprised the balance.
Filinvest REIT Corp. will own and operate a portfolio of 16 office buildings clustered in the 18.7-hectare Northgate Cyberzone, one of the first Philippine Economic Zone Authority-accredited IT parks.
It will also own and operate an office tower with a retail component in Cebu Cyberzone, also a PEZA-registered economic zone in the gateway to Cebu IT Park, Lahug, Cebu City.
These properties have a total GLA of 301,362 square meters.
Filinvest REIT Corp. plans to conduct a P14.9-billion initial public offering in July to unlock the value of its office assets.
Based on the filing with the Securities and Exchange Commission, Filinvest REIT will sell up to 1.6 billion common shares with an over allotment option for another 163.418 million shares at an offer price of P8.30 each.
The offer shares represent 36.74 percent of the company’s total issued outstanding capital stock.
“REIT is a new financial platform to monetize our investment assets as they mature and provide funding to fuel future growth. The fair market value of all our investment projects both existing and under construction is P190 billion based on the appraisals of third parties,” said FLI president and chief executive Josephine Gotianun-Yap said.
As one of the pioneers in providing offices to the BPO sector, FLI benefited from the resilience of the IT-BPO sector which gave the company’s office leasing business a steady cashflow amid the pandemic.
Revenues from office leasing business increased by 8 percent in 2020 to P3.12 billion from a year ago.
FLI REIT will be the third property firm to conduct an REIT offering after the government revised its listing rules.