RL Commercial REIT Inc., (RCR), the real estate investment trust company owned by Robinsons Land Corp., has set the final price for its maiden share offering at P6.45 apiece.
RCR at this price level will raise as much as P23.5 billion from the sale of up to 3.34 billion secondary shares with an over-allotment of up to 305.1 million common shares.
The final price of P6.45 is 11.36 percent lower than the maximum cost of P7.31 each.
It set the offering period from August 25 to September 3 and the listing of the shares in the main board of the Philippine Stock Exchange on September 14.
New investors will corner 36.67 percent of RCR’s issued and outstanding common shares, while current shareholders will retain 63.33 percent, if the oversubscription option is exercised.
RCR’s initial portfolio, which has a total gross leasable area of 425,315 square meters, consists of 14 office buildings registered with the Philippine Economic Zone Authority.
These buildings are strategically located in central business districts across Metro Manila, such as Makati, Pasig, Quezon City and Taguig, and in the key cities of Naga, Tarlac, Cebu and Davao.
The total appraised value of RCR’s initial portfolio is at about P73.9 billion as of 30 June 2021 based on Santos Knight Frank’s estimates.
RLC has 422,000 sq. m. of office leasing portfolio that RCR could acquire in the future.
RCR will be fourth REIT to conduct an initial public offering on the PSE after AREIT Inc., DDMP REIT Inc. and newly-listed Filinvest REIT Corp.
BPI Capital Corp. and UBS AG Singapore Branch will serve as joint global coordinators, lead managers, and joint book-runners for the proposed offering.
A 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 and railroads.
It is a type of investment instrument that provides a return to investors derived from rental income of the underlying real estate asset.