The Securities and Exchange Commission (SEC) has cleared the real estate investment trust (REIT) offering of as much as P14.92 billion planned by Gotianun-led Filinvest Land Inc.
Filinvest-sponsored Cyberzone Properties, which will change its name to Filinvest REIT Corp., was authorized to offer to the public up to 1.634 billion common shares for up to P8.30 per share, with an overallotment option of up to 163.419 million shares. This will be the third REIT initial public offering in the country following last year’s debut of Ayala Land-sponsored AREIT Inc. and DoubleDragon Properties Corp.’s DDMP REIT’s offering earlier this year.
Filinvest REIT’s offering was approved by the SEC in an en banc meeting on Tuesday. IPO is targeted to run from July 19 to 28 while listing on the main board of the Philippine Stock Exchange will be on August 6, based on the latest timetable submitted to the SEC.
A total of 4.89 billion common shares will be listed, subject to compliance with certain remaining requirements. About 36.74 percent of the REIT’s shares will be brought to public hands.
This REIT seeks to differentiate itself by becoming the first sustainability-themed REIT in the country. Filinvest City, where 16 out of the 17 buildings in Filinvest REIT’s portfolio are located, was the first central business district in the country to bag the Leadership in Energy and Environmental Design LEEDv4 gold for neighborhood development certification.
This hub also has “eco-loop,” the Philippines’ first integrated, electric-powered 24/7 public transport system. Office buildings within its Northgate Cyberzone are served by the country’s largest district cooling system, reducing carbon emissions and energy consumption.
The 17th property in the portfolio is one office tower with retail component in Cebu Cyberzone. All in all, the 17-building REIT portfolio has a total gross leasable area (GLA) of 301,362 square meters.
Filinvest REIT – which has 88.4 percent of its gross leasable area devoted to business process outsourcing (BPO) locators – does not own the land on which the skyscrapers stood, but these are secured by 75-year lease agreements. As mandated by law, Filinvest REIT intends distribute to shareholders at least 90 percent of its annual distributable income as dividends.
The distributable income refers to 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.
BPI Capital Corp. and UBS AG, Singapore Branch are the joint global coordinators and bookrunners for the offer. BPI Capital and China Bank Capital are the local lead underwriters while First Metro Investment Corp. and SB Capital Investment Corp. are the local co-lead underwriters.