Filinvest REIT sets IPO price at P7 per share

MANILA, Philippines — The Gotianun Group’s real estate investment trust company Filinvest REIT Corp. has set the final price of its upcoming initial public offering at P7 per share.

This followed a book building process with domestic qualified institutional buyers and pension funds, along with international institutional and private bank participation.

It is eyeing to list on the Philippine Stock Exchange on Aug. 12, after an offer period which will run from July 23 to Aug. 3.

With a base offer of 1.6 billion common shares and an over-allotment option of up to 163.4 million common shares, the company’s IPO is targeting to raise up to P12.6 billion in gross proceeds.

As of March 31, Filinvest REIT’s sponsor, Filinvest Land Inc. (FLI) has 14 operational office buildings and 11 more under construction located in key central business districts in the country.

These buildings have a total gross leasable area of around 315,000 square meters.

The property portfolio of Filinvest REIT’s portfolio, meanwhile, consists of 17 Grade A office buildings on prime property totaling over 300,000 sqm of GLA.

The 16 buildings are located in Northgate Cyberzone within Filinvest City in Alabang while one is in the gateway of Cebu IT Park in Lahug, Cebu City.

Filinvest REIT has access to inorganic growth opportunities from the sponsor’s pipeline of income-producing commercial assets.

For the IPO, the company tapped BPI Capital Corp. and UBS AG Singapore branch as the joint global coordinators and bookrunners for the offer.

BPI Capital Corp. is the sole local coordinator and local lead underwriter while UBS AG Singapore is the international bookrunner.

China Bank Capital Corp. is a local lead underwriter while First Metro Investment Corp. and SB Capital Investment Corp. are the local co-lead underwriters.

Filinvest REIT will be the third REIT to list on the stock exchange after Ayala Land Inc.’s AREIT and Double Dragon’s DDMP REIT.

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

Companies that own and operate income-generating real estate assets are considered REIT companies.

These companies include offices, apartment buildings, hotels, warehouses, shopping centers and highways.