VistaREIT builds up P36 billion portfolio ahead of IPO

MANILA, Philippines —VistaREIT Inc., the real estate investment trust of the Villar Group, is building up a strong portfolio of community-based malls, as it pushes for its P9.18-billion initial public offering (IPO) this year.

With an appraised portfolio valuation of nearly P36 billion, VREIT’s assets will comprise 10 community malls and two ecozone-accredited office buildings, making it the first REIT in the country that offer mostly community malls.

The initial VREIT assets cover SOMO, a Vista Mall in Cavite; Starmall San Jose del Monte in Bulacan; Vista Mall General Trias in Cavite; Vista Mall Tanza in Cavite; Vista Mall Imus in Cavite; Vista Mall Las Piñas and Vista Mall Las Piñas Annex; Vista Mall Pampanga; Vista Mall Antipolo; Vista Mall Talisay Cebu; Vistahub BGC in Taguig; and Vistahub Molino in Cavite.

The entire portfolio has 256,404 square meters of aggregate gross leasable area – with 97 percent total occupancy rate and an average expiry lease of five years.

Optimistic about the prospects of a reinvigorated economy due to the easing of restrictions, VREIT sees as a robust foundation its synergy with Villar Group’s retail ecosystem, which accounted for 68 percent of total portfolio gross leasable area (GLA) and contributed 77 percent of rental income as of end-2021.

Vista Malls’ anchor tenants include AllHome and AllDay Supermarkets, recreation areas, amusement centers, pharmacy, food and cinema.  Essential tenants are supermarkets, home improvement and appliance stores, pharmacy, and food and financial services.

VREIT has filed for a P9.18-billion IPO, which will offer up to 3.33 billion secondary common shares at a maximum price of up to P2.50 per offer share. It has an over-allotment option of up to 333.75 million secondary common shares.

For the VREIT IPO, the offer shares will be sold by Vista Land’s subsidiaries – Masterpiece Asia Properties Inc., Manuela Corp., Communities Pampanga Inc., Crown Asia Properties Inc. and Vista Residences Inc.

VREIT has tapped China Bank Capital Corp., as issue coordinator, and together with BDO Capital & Investment Corp., PNB Capital and Investment Corp., RCBC Capital Corp. and SB Capital Investment Corp., as joint lead underwriters and bookrunners. Abacus Capital and Investment Corp. has also been mandated as a participating underwriter.

VREIT will be the second REIT to list in the market this year after the listing of Citicore Energy REIT Corp. (CREIT) last February. Other REITs in the market are Ayala-led AREIT Inc., the country’s first REIT; DDMP REIT Inc. of Injap Sia’s DoubleDragon;  Gotianun-led Filinvest REIT Corp.; Robinsons Land’s RL Commercial REIT Inc. and MREIT Inc. of the Megaworld Group.