Villar’s PREIT utilizes IPO proceeds for energy projects

MANILA, Philippines — Billionaire Manuel Villar Jr.’s Premiere Island Power REIT Corp. (PREIT) has used up all of the proceeds it obtained from its initial public offering (IPO) to bankroll energy projects in Luzon.

Based on a progress report, PREIT utilized all of the P2.32 billion that it gained from its IPO in 2022 to fund energy projects in Bataan, Camarines Norte, Camarines Sur and Palawan.

Broken down, PREIT invested more than a third of the capital (P809.69 million) in the Palawan Main Grid, a 43-megawatt hybrid power generation facility.

PREIT also invested P772.34 million in the Camarines Sur Solar Farm, a solar photovoltaic farm (PV) with a 50-MW capacity, while P78.6 million was spent for the Bataan Solar Farm, a 20-MW solar PV farm.

The company also invested P58.86 million in a 36-MW solar PV farm in Camarines Norte. Apart from this, PREIT listed the remaining P600.79 million as accumulated costs.

“As of Dec. 31, 2023, the sponsors already disbursed the total net proceeds from the 2022 IPO, amounting to P2.32 billion, in accordance with the reinvestment plan,” PREIT said.

As planned, PREIT used the proceeds from its IPO to acquire real estate that may be designated as sites for renewable, social and missionary power projects.

PREIT debuted on the main index in 2022, selling stocks held by Villar-led S.I. Power Corp. (SIPCOR) and Camotes Island Power Generation Corp. (CAMPCOR).

As of September last year, the company manages a portfolio of properties with a gross leasable area of 30,666 sqm. in Cebu and Siquijor.

PREIT plans to widen its portfolio on power generation by investing in real estate that could be used for energy projects.

In its three-year investment strategy, PREIT said it is looking at properties that may be utilized for power storage, baseload generation or both. It also targets real estate for missionary electrification for as long as the areas host renewable sources and can contribute to the company’s growth.

As of 2022, PREIT’s sponsor SIPCOR holds a concession to supply electricity to Siquijor for 20 years, while CAMPCOR maintains a contract with the Camotes Electric Cooperative Inc. for 15 years.

PREIT is the real estate investment trust focused on power and infrastructure projects of Villar-owned Prime Asset Ventures Inc., the parent of both SIPCOR and CAMPCOR.