FLI creates more room for FILRT asset infusion

MANILA, Philippines — Filinvest Land Inc. (FLI), the Gotianun family’s listed property developer, is gearing up to infuse more assets into Filinvest REIT Corp. (FILRT) following the completion of its capped voluntary tender offer.

FLI said its capped voluntary tender offer via share-swap enjoyed 2.3x participation in excess of the cap, enjoying significant support from major institutional shareholders and numerous minority shareholders.

The company said around 4.24 billion FLI common shares in applications were received, well above the 1.87 billion share cap.

As a result, FILRT’s public float has expanded to 46.68 percent from 34.48 percent prior to the tender offer.

FLI said the public float expansion creates room for the company to infuse assets into FILRT while remaining compliant to be a publicly listed company.

“We are encouraged by the investing public’s robust support of our capped voluntary tender offer. Our efforts in delivering this value-enhancing initiative have paid off,” FLI president and CEO Tristan Las Marias said.

“As we conclude this transaction, we have greater confidence in creating more shared benefits for shareholders of FILRT through asset infusions and for those of FLI with a virtuous cycle of capital appreciation,” he said.

The tender offer ran from Oct. 7 to Nov. 27, with the acceptance of shares tendered released last Dec. 6.

The tendered shares were accepted and crossed on Dec. 9.

FLI said the capped voluntary tender offer provided its shareholders with the opportunity for their shares to be bought back in exchange for those of FILRT.

It said that FLI stockholders stood to gain from the tender offer by benefiting from price appreciation and a stable dividend yield from FILRT shares.

Further, the tender offer also gave FLI shareholders a compelling opportunity to participate in REITs, gaining exposure to a portfolio of income-generating properties.

FILRT’s portfolio as of end September included over 330,000 square meters of gross leasable area of offices and land leased by a hotel, with the potential for capital appreciation.