Robinsons Land Corp., the real estate developer controlled by tycoon Lance Gokongwei and his family, plans to raise up to 26.7 billion pesos ($557.9 million) from the initial public offering of its office real estate investment trust (REIT).
The newly formed RL Commercial will be sponsored by Robinsons. It will be the fourth REIT to list on the Philippine Stock Exchange and comes on the heels of the blockbuster listing next week of noodle and snack food maker Monde Nissin, which raised 55.9 billion pesos in the country’s biggest ever IPO.
RL Commercial REIT will offer up to 3.64 billion shares at a maximum price of 7.31 pesos each through the IPO, according to a recent filing to the Securities and Exchange Commission. The offer comes with an overallotment option of 305.1 million shares.
The REIT will hold 14 properties valued at 73.3 billion pesos as of September 2020 developed by its sponsor Robinsons. The assets, with a combined gross leasable space of 400,000 square meters, are located in business districts in and around the Philippine capital of Manila as well as Cebu City in the central Philippines and Davao City in the southern island of Mindanao.
The REIT’s sponsor Robinsons is the property arm of the Gokongwei family conglomerate JG Summit, which has interests across airlines, banking, food and power. Robinsons had total assets valued at 215 billion pesos as of December 2020, according to Robinsons’ annual report. Robinson’s net profit declined last year as sales of residential properties and rental income from shopping malls and hotels were impacted by government lockdowns imposed to curb the spread of Covid-19. However, contributions from office and industrial buildings remained stable.
“Despite unprecedented headwinds, our company remains stable, strong, and well-positioned to rise above uncertainty… We will continue to invest in our diversified business and in enduring digital transformation strategies to create greater value for our stakeholders.”lance gokongwei