RLC sells shares in REIT for P1.9 billion

MANILA, Philippines — Robinsons Land Corp. (RLC) has raised P1.87 billion from the overnight block placement of its shares in its real estate investment trust (REIT) unit.

RLC yesterday sold 318.9 million common shares in RL Commercial REIT Inc. (RCR) at P5.86 per share, raising P1.87 billion in proceeds, exclusive of taxes and fees.

This raised the public float of RCR to 5.65 million common shares, or 35.93 percent, of the total issued and outstanding common shares of the company.

RLC said the placement shares were offered and sold within the Philippines and they were listed as transactions exempt from registration.

As such, RLC no longer had to process the shares with the Securities and Exchange Commission as allowed by the Securities Regulation Code.

RLC said the proceeds from the transaction would be paid on Oct. 22.

The Gokongwei-led developer has committed to file a reinvestment plan before the Philippine Stock Exchange to detail how it would spend the gains.

BPI Capital Corp. served as the sole placement agent and bookrunner, while Picazo Buyco Tan Fider & Santos acted as transaction counsel.

“This transaction was anchored by high quality, long-only institutional investors,” RLC said.

RLC’s share price yesterday gained by 0.37 percent to P16.32 apiece, while that of RCR dipped by 3.06 percent to close at P6.01 each.

In September RCR proceeded with the proposed property-for-share swap with RLC involving 13 assets, expanding its gross leasable area by 347,329 square meters. In exchange, RLC subscribed to 4.99 million common shares in RCR for P6.8 apiece, totaling P33.92 billion.

The parties hope to get all regulatory approvals for the swap before the end of the year. The deal seeks to diversify the property portfolio of RCR, made up mostly of office spaces, by bringing in mall assets of RLC.

The swap covers 11 Robinsons malls in Novaliches, Cainta, Luisita, Cabanatuan, Lipa, Sta. Rosa, Imus, Los Baños, Palawan, Ormoc and Cybergate Davao.