SEC approves Villar-backed REIT IPO

MANILA, Philippines — The Securities and Exchange Commission approved the plans of another real estate investment trust company, this time backed by the Villars, to go public.

In a statement on Tuesday, the SEC greenlit the registration statement of Villar-led Premiere Island Power REIT Corp. (PREIT) to do an initial public offering. The registration statement noted that PREIT’s IPO will cover 3.289 billion common shares. 

The SEC noted that the offering will also include 1.4 billion common shares to be sold at P2 apiece. The shares will be sold by Siquijor Island Power Corp. (SIPCOR) and Camotes Island Power Generation Corp. (CAMPCOR). 

This latest REIT offering has an overallotment option of 210 million common shares if investor interest proves robust. 

Proceeds could reach up to P3.09 billion if the overallotment option is exercised. 

The law mandates REIT companies hand out 90% of its annual net income as dividends to investors. 

As it is, PREIT is the power and infrastructure REIT vehicle of Villar-led Prime Asset Ventures, Inc. The company’s property portfolio is currently comprised of land and power assets used by power generation projects of SIPCOR and CAMPCOR in Cebu and Siquijor. These have a total combined capacity of 21.2 megawatts.

The REIT offering comes amid a slew of companies postponing their IPOs this year since many fear investor interest might prove lackluster amid rising inflation and a high interest rate environment