RLC funnels in P34 billion assets to REIT unit

MANILA, Philippines — Robinsons Land Corp. (RLC), the real estate firm of the Gokongwei family, has infused P33.92 billion worth of assets to its real estate investment trust unit RL Commercial REIT Inc. (RCR) via a property-for-share swap.

In a stock exchange filing, RLC said it entered into a third property-for-share swap transaction with RCR through the execution of a deed of assignment for the infusion of 13 commercial assets totaling 347,329 square meters of gross leasable area.

The commercial assets with a total appraised value of P33.92 billion have been exchanged for 4.99 billion primary common shares of RCR at a price of P6.80 apiece.

As RCR’s sponsor, RLC said the disposition of the 13 commercial assets is part of its commitment to support the REIT unit’s growth plans.

“Furthermore, RLC as shareholder shall be entitled to additional dividends derived from the higher distributable income generated by RCR as a result of the transaction,” it said.

The 11 malls totaling 278,526 sqm of leasable space as part of the transaction include Robinsons Malls in Tarlac, Laguna, Cavite, Davao del Sur, Batangas, Nueva Ecija, Palawan, Quezon City, Rizal and Leyte.

The two office assets totaling 68,803 sqm of leasable space are Giga Tower in the Bridgetowne Destination Estate in Quezon City and Cybergate Delta 2 in Davao City.

RLC owns 50.05 percent of RCR prior to the infusion of the properties.

After the infusion, it will own 65.90 percent of the enlarged total shares of RCR.

The assets increased the total gross leasable space of RCR by an additional 347,329 sqm to 827,808 sqm.

RCR also remains as the Philippine REIT with the widest geographical reach with assets in various key locations.