PSE oks DDMP REIT IPO

MANILA, Philippines — The Philippine Stock Exchange index (PSEi), the operator of the local bourse, has approved the initial public offering (IPO) of tycoon Injap Sia’s DDMP REIT Inc. (DDMPR), the second real estate investment trust (REIT) to debut on the local bourse.

DDMPR, which will be listed on the main board of the PSE on March 23, is set to offer up to 5.94 billion secondary common shares at a price of up to P2.25 per share, with the final offer price to be announced after the company’s book building process.

The shares to be offered to the public are currently owned by DoubleDragon, Benedict Yujuico and Teresita Yujuico. The selling shareholders set aside 594.2 million more shares for over-allotment.

PSE president and CEO Ramon Monzon is optimistic DDMP REIT’s listing would encourage more real estate companies to participate in the newly created REIT landscape in the country.

“We are optimistic that more property companies will list REITs in the exchange this year given the benefits to the REIT company, its investors and to the country’s economy because of the reinvestment in the Philippines rule for the REIT’s sponsor,”  Monzon said.

Assuming the full exercise of the over-allotment option, new investors will corner 36.67 percent of the issued and outstanding common shares of DDMP REIT.

DoubleDragon will retain a 44.33 percent interest, while the Yujuicos will continue to own 9.65 percent and 9.35 percent, respectively.

At present, DDMP REIT’s portfolio includes six office towers with retail components within DD Meridian Park in Pasay City. The company’s leasing spaces cater to a mix of tenants, such as business process outsourcing companies, government agencies and corporate locators.

As mandated by law, DDMP REIT shall distribute at least 90 percent of its annual distributable income as dividends.

The distributable income refers to the company’s net income as adjusted for unrealized gains and losses/expenses and impairment losses, and other items in accordance with internationally accepted accounting standards. It excludes proceeds from the sale of the REIT’s assets that are reinvested in the REIT within one year from the date of the sale.

The company tapped Credit Suisse (Singapore) Ltd., DBS Bank Ltd., Nomura Singapore Ltd. and PNB Capital and Investment Corp. as joint global coordinators for the REIT offering.

The global coordinators will concurrently serve as joint bookrunners, along with CIMB Investment Bank Bhd, Investment & Capital Corp of the Philippines (ICCP), Macquarie Capital Securities (Singapore) Pte. Ltd., Maybank Kim Eng Securities Pte. Ltd., and RCBC Capital Corp.

DDMP further mandated Credit Suisse, DBS, Nomura, CIMB, Macquarie, and Maybank as international bookrunners for the offer, and PNB Capital, ICCP, and RCBC Capital as domestic underwriters.

As with all IPOs, 10 percent of the offer shares will be set aside for local small investors (LSIs).

DDMP REIT is the second REIT listing in the country following the listing of the Ayala Group’s AREIT Inc. last year.