PSE approves IPO of Premiere REIT

MANILA, Philippines — The Philippine Stock Exchange (PSE) has approved the initial public offering (IPO) of the Villar Group’s Premiere Island Power REIT Corp. (Premiere REIT), estimated to raise up to P3.2 billion.

PSE president and CEO Ramon Monzon said REITs have become a good option for investors, adding that he hopes to see more REIT offerings in the future.

“REITs have become a popular asset class among investors in the last two and a half years. We welcome more listings in this space to expand the REIT options available to investors,” Monzon said.

Premiere REIT is envisioned to be the power and infrastructure REIT platform of Villar-led Prime Asset Ventures Inc. It is sponsored by S.I. Power Corp. (SIPCOR) and Camotes Island Power Generation (CAMPCOR).

The company will be offering up to 1.4 billion firm shares and up to 210 million over-allotment option shares at a price of up to P2 per share, plus up to 210 million common shares as part of the over-allotment option.

The final offer price will be determined on Nov. 23 after REIT concludes its book-building period.

Premiere REIT’s offer period is scheduled from Nov. 28 to Dec. 5 while its tentative listing date is on Dec 15.

Net proceeds from the offer could reach up to P3.09 billion, which will go to the selling shareholders and mandated to be reinvested in the Philippines, pursuant to the Revised Implementing Rules and Regulations of Republic Act 9856, otherwise known as the Real Estate Investment Trust Act of 2009.

If the over-allotment option is exercised, new investors will corner 42.6 percent of the issued and outstanding common shares of Premiere REIT, while SIPCOR and CAMPCOR will retain a 57.4 percent interest.

The company tapped China Bank Capital Corp. as sole issue manager, underwriter, and bookrunner for the offer.

RCBC Capital Corp. will also serve as participating underwriter.

As mandated by law, Premiere 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.