Another Villar-owned REIT to go public

MANILA, Philippines — The group of property tycoon Manuel Villar Jr. is braving the stock market again this year, despite the prevailing volatility, to raise P3.1 billion from its real estate investment trust (REIT) unit, the second such listing for the group.

The Villar Group will list Premiere Island Philippines Holding Corp., a REIT firm sponsored by S.I. Power Corp. (SIPCOR) and Camotes Island Power Generation (CAMPCOR). The company will eventually change its name to Premiere Island Power REIT Corp. (PREIT).

PREIT plans to hold its initial public offering (IPO) from Nov. 25 to Dec. 2, and debut on the stock exchange on Dec. 12, based on the latest timetable it submitted to the Securities and Exchange Commission (SEC).

The SEC has given its green light to PREIT for the planned IPO, which will include up to 1.4 billion common shares priced at P2 per share, to be sold by SIPCOR and CAMPCOR, plus up to 210 million common shares as part of the over-allotment option.

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 (REIT) 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 PREIT, while SIPCOR and CAMPCOR will retain a combined 57.4 percent interest.

The company engaged China Bank Capital Corp. as sole issue manager, underwriter and bookrunner for the offer. RCBC Capital Corp. will also serve as participating underwriter.

VFund Management Inc. and VProperty Management Inc. have been tapped as fund manager and property manager, respectively.

PREIT is seen as the power and infrastructure REIT platform of Villar-led Prime Asset Ventures Inc. The company’s initial property portfolio consists of land and power plant assets utilized in the power generation projects of SIPCOR and CAMPCOR in Cebu and Siquijor, which have a total combined installed capacity of 21.2 megawatts.

As mandated by law, PREIT 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.