The Securities and Exchange Commission approved the planned initial public offerings of two real estate investment trusts sponsored by property developers Megaworld Corp. and Robinsons Land Corp.
The SEC said in a statement Wednesday it cleared the P27.3-billion maiden share offering of Megaworld’s MREIT Inc. and the P26.7-billion bid of Robinsons Land’s RL Commercial REIT Inc., subject to their compliance with certain remaining requirements.
MREIT plans to offer up to 1.078 billion secondary shares with a price of up to P22 per share and an overallotment option for another 161.7 million common shares. The shares are owned by Megaworld.
The IPO is expected to run from Aug. 23 to 27 in time for the REIT’s listing on the Philippine Stock Exchange on Sept. 6 based on the latest timetable submitted by the company to the SEC.
Assuming the full exercise of the overallotment option, MREIT will have a public float of 49 percent after the IPO.
MREIT engaged BDO Capital & Investment Corp., Credit Suisse (Singapore) Limited, UBS AG Singapore Branch and DBS Bank Ltd. as joint global coordinators and bookrunners for the offering.
Megaworld earlier said it was planning to inject 10 office, retail and hotel assets with an aggregate gross leasable area of 224,430.80 square meters into MREIT. The assets are located in three prime townships in Taguig City, Iloilo City and Quezon City.
The MREIT portfolio of assets include 1800 Eastwood Avenue, 1880 Eastwood Avenue, E-Commerce Plaza, One World Square, Two World Square, Three World Square, 8/10 Upper McKinley, 18/20 Upper McKinley, One Techno Place, Richmonde Tower and Richmonde Hotel Iloilo.
Meanwhile, RL Commercial REIT plans to sell up to 3.34 billion secondary common shares at a price of up to P7.31 apiece, with an overallotment option for another 305.1 million common shares.
New investors will corner 36.67 percent of RL Commercial REIT’s issued and outstanding common shares, while current shareholders will retain 63.33 percent, in case the oversubscription option is exercised.
RL Commercial REIT will conduct the IPO from Aug. 31 to Sept. 8 and list on the PSE on Sept. 20, based on the latest timetable submitted to the SEC.
The company tapped BPI Capital and UBS AG, Singapore Branch as joint global coordinators, lead managers and joint bookrunners for the offering.
An REIT is a stock corporation established principally for the purpose of owning income-generating real estate assets such as apartment buildings, office buildings, medical facilities, hospitals, hotels, resorts, highways, warehouses, shopping centers, railroads, among others.
It is a type of investment instrument that provides a return to investors derived from rental income of the underlying real estate asset.