PSE approves VREIT’s IPO

MANILA, Philippines — It’s all systems go for the initial public offering of Villar-backed VistaREIT Inc. (VREIT) after the Philippine Stock Exchange Inc. (PSE) gave its green light.

The offering will run from May 30 to June 3, while the listing of the shares has been scheduled on June 15.

VREIT is offering up to 3.33 billion shares plus 333.75 million over-allotment option shares at a price of up to P2.50 per share. The final offer price will be determined on May 25 after the company conducts its book building process.

PSE president and CEO Ramon S. Monzon welcomed the upcoming listing of VREIT at the local bourse.

“We are pleased with the steady increase in the number of REIT listings in the PSE. The entry of VistaREIT will further boost the size of the REIT market and broaden the portfolio of mall and office building assets in the local REIT space,” Monzon said.

Traders said a lot of investors have been waiting for VREIT, but actual participation in the offer would depend on the volatility of the market and in the US markets which have declined in recent weeks.

VREIT will infuse high-income generation assets into its portfolio, particularly the profitable assets of Vista Land & Lifescapes Inc., its sponsor.

These include the Worldwide Corporate Center, the Vista Group’s prime office property, and main office located in Mandaluyong City.

Vista Land’s commercial assets are composed of 31 malls, seven office buildings and 69 commercial centers with a combined gross floor area (GFA) of 1.6 billion square meters. VREIT assets account for over 20 percent of VLL’s total GFA.

Aside from this, Vista Land has about 3,000 hectares of raw land, which are also now known as the Vista Estates.

VREIT’s initial portfolio is composed of 10 community malls and two PEZA-registered office buildings with an aggregate gross leasable area of 256,404 sqm.

Tycoon Manuel Villar Jr., chairman of the Villar Group, said VREIT has a massive opportunity for growth since its inception comes as the Philippine economy recovers from the COVID-19 pandemic.

Under its comprehensive plan, VREIT will also focus on the competitiveness of Vista Land’s properties in the market when it comes to its lease rates.