Filinvest files P14.8 billion public offering of REIT

MANILA, Philippines — Gotianun-led Filinvest Group has filed with the Securities and Exchange Commission its application for a real estate investment trust (REIT) offering.

In the registration statement filed with the SEC, Filinvest REIT Corp., formerly Cyberzone Properties Inc., said it would offer for sale at least 1.63 billion common shares at an offer price of P8.30 apiece.

Total amount to be raised is P14.8 billion.

Filinvest Land Inc., as selling shareholder, will receive the net proceeds from the offer.

The company engaged BPI Capital Corp. and UBS AG, Singapore branch, as joint global coordinators and bookrunners for the transaction, with the former also serving as local bookrunner and underwriter.

Filinvest REIT will be the third REIT listing in the Philippine Stock Exchange after Ayala Land’s AREIT Inc. and Double Dragon’s DDMP REIT.

It has a growing portfolio of recurring income projects and significant prime office properties located in Northgate Cyberzone in Filinvest City, Alabang and Filinvest Cyberzone Cebu in Cebu City.

Northgate Cyberzone in Filinvest City is an 18.7-hectare PEZA-registered business park designed to cater primarily to BPO companies and which is currently home to the Philippines’ largest district cooling system. The cooling system helps reduce energy consumption in the district and lowers the initial capital investment. It also reduces carbon dioxide emissions and enhances real estate value by freeing up building space for other uses.

FLI is one of the pioneer providers of office space to the business process outsourcing (BPO) industry in the Philippines, currently has 43 operating and under construction office buildings covering over 824,000 square meters of gross leasable area.

Its BPO buildings have continued to be fully operational during the pandemic and CPI’s office rental revenues increased by 16 percent to P2.46 billion from January to September   last year.

The REIT Act allows REIT companies to list and trade its shares of stock in the stock market as an alternative means to raise funds for property development and expansion initiatives.