Villar REIT files P9.2 billion IPO plan

MANILA, Philippines — Business tycoon Manuel Villar Jr. continues to expand his business empire, seeking once more to further grow his wealth through the country’s stock market with a P9.18-billion initial public offering of VistaREIT Inc. (VREIT).

VREIT, a commercial real estate investment trust (REIT) sponsored by Vista Land & Lifescapes Inc., filed a registration statement with the Securities and Exchange Commission last week.

Based on its plan, VREIT will offer up to 3.33 billion secondary common shares at a maximum offer price of P2.50 per share, with an over-allotment option of up to 333.75 million secondary common shares.

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.  as the selling shareholders.

The company has yet to announce the exact timetable, but industry sources said this would likely be in the early part of the second quarter.

VREIT’s portfolio will comprise of office and mall assets of Vista Land, and aims to be among the leading diversified commercial REITs in the country in terms of portfolio, profitability, growth, sustainability and dividend yield.

The company will have an initial portfolio of 10 community malls and two PEZA-registered office buildings with an aggregate gross leasable area (GLA) of 256,404 square meters. The malls are located in Vista Land’s integrated developments that serve as a one-stop shop for its residents in Las Piñas, Bacoor, General Trias, Imus,  Tanza, Antipolo, San Jose Del Monte, San Fernando and Talisay City in Cebu. The office buildings are located in Taguig City and Bacoor City.

Over the last three years, these properties have enjoyed consistently high occupancy rates of 93 to 100 percent of their respective GLAs.

In terms of performance, the different Vista Land commercial and office assets delivered sustained rental income growth even at the height of the pandemic given the essential nature of its mall tenants.

Through a property-for-share swap, Vista Land, through the selling shareholders, infused the 12 commercial assets into VREIT.

VREIT has tapped China Bank Capital Corp, as issue coordinator, 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.

The Villar-owned REIT will be the second REIT to list in the market this year after the listing of Citicore Energy REIT Corp. last February. Other REITs in the market are Ayala-led AREIT Inc., the country’s first REIT; DDMP REIT Inc.; Filinvest REIT Corp.; RL Commercial REIT Inc. and MREIT Inc.