Robinsons-backed REIT firm gets SEC clearance

CEBU, Philippines — RL Commercial REIT, Inc. (RCR) received a pre-effective clearance from the Securities and Exchange Commission (SEC) for its real estate investment trust initial public offering (REIT IPO) of up to P26.7 billion (US$538M1), subject to compliance with conditions and submission of documents set forth in its Pre-effective Letter.

RCR is backed by its sponsor, Robinsons Land Corporation (RLC), one of the leading real estate companies in the country.

The SEC approved the registration statement of RCR for the proposed offering of up to 3.34 billion common shares at a maximum offer price of P7.31 per share, with an over-allotment option of up to 305 million common shares.

Upon listing, RCR is poised to be the largest REIT by portfolio valuation, longest in land lease tenure, and most geographically diversified office REIT in the country. RCR’s initial portfolio, which has a total gross leasable area (GLA) of 425,315 sqm, consists of 14 PEZA-registered, commercial real estate assets strategically located in central business districts across Metro Manila such as in Makati, Pasig, Quezon City and Taguig and in the key cities of Naga, Tarlac, Cebu, and Davao. The total appraised value of RCR’s initial portfolio is at about P 73.9 billion as of 30 June 2021, per Santos Knight Frank’s valuation.

As indicated in the latest REIT Plan available at the company’s website, RCR and RLC have entered into a Memorandum of Understanding (MOU) for the potential acquisition of RLC’s Cyberscape Gamma in Ortigas CBD and/or Robinsons Cybergate Center 1 in Mandaluyong. Inclusive of the MOU assets, RLC has approximately 204,000sqm GLA in existing office assets, 68,000sqm GLA of business process outsourcing (BPO) spaces located within RLC’s various commercial centers as well as 150,000sqm GLA of properties that are in various stages of construction. Overall, RLC’s potential pipeline for infusions to RCR amounts to a total GLA of approximately 422,000 sqm over time. All potential infusions are subject to the fund manager’s recommendations, market conditions, the requirements of RCR’s business and the approval of the relevant regulatory bodies.

“We are committed to providing an excellent customer experience and satisfaction by offering and maintaining office projects of high quality and reliability, meeting the evolving needs of our customers,” the company stated in the REIT Plan submitted to the SEC.

The office tenants of RCR properties are primarily engaged in essential services like information technology and business process management (IT-BPM). The BPO industry is the core of RCR’s tenant base.

Based on the latest timetable submitted to the SEC, RCR targets to conduct its offer period from August 31 to September 8, 2021, with target listing date on September 20, 2021.

BPI Capital Corporation (BPI Capital) and UBS AG Singapore Branch (UBS) will serve as the Joint Global Coordinators, Lead Managers, and Joint Bookrunners for the proposed offering. BPI Capital will also act as the Lead Local Underwriter while UBS will act as the Lead International Bookrunner. China Bank Capital Corporation, First Metro Investment Corporation, and PNB Capital and Investment Corporation will serve as the Local Underwriters while SB Capital Investment Corporation will serve as the Participating Underwriter. Meanwhile, CLSA Limited and Merrill Lynch (Singapore) Pte. Ltd. are the International Bookrunners.