MANILA, Philippines — Filinvest Land Inc. is getting closer to the much-anticipated stock market debut of its own real estate investment trust (REIT) company.
In a disclosure to the stock exchange on Wednesday, the Gotianun-led property giant said its subsidiary, Cyberzone Properties Inc., will sell up to 1.67 billion shares at an offer price of P8.30 each.
Including an over-allotment option of up to 163 million shares, the Filinvest-backed REIT firm is expected to raise up to P14.9 billion. Demand is likely to be healthy, an analyst said when sought for comment.
“Considering the demand for REITs recently, coupled with the country’s low interest rate environment, it is likely that demand for Filinvest’s REIT will be robust,” Anna Corenne Agravio, property stocks analyst at Regina Capital, said in a Viber message.
Filinvest earlier set its REIT portfolio to include office buildings for the business process outsourcing (BPO) sector in Northgate Cyberzone in Filinvest City in Alabang and Filinvest Cyberzone in Cebu City.
As it is, rental fees paid by firms housed in these buildings would be a good and sustainable source of cash for REIT investors. For instance, as of September last year, Cyberzone Properties’ rental revenues rose 16% on-year to P2.46 billion despite the pandemic, and if it were already a REIT by then, 90% of that would have been declared as dividends.
“Details are still scant but some investors would find (the offer price) attractive bearing in mind that Cyberzone’s properties are all well-positioned to further capture the growing demand from the BPO industry,” Agravio said.
Once listed, the date to which has not been specified yet, Filinvest’s REIT would be the third of its kind in the local bourse. It may closely follow that of DoubleDragon Properties Inc., which plans to list its building host to retailers and BPO offices as REIT this month at an initial public offering worth up to P14.7 billion.
Last year, REIT in the Philippines finally kicked off with Ayala-led AREIT Inc. braving pandemic uncertainties with its mall and office portfolio, and raising P13.6 billion in August. That first REIT came less than a year after the government finalized contentious tax and public float rules that left the REIT sector languishing for over a decade despite a 2009 law for that purpose.
Shares in Filinvest ended flat at P1.17 each on Wednesday.
Article and Photo originally posted by Philippine Star last March 10, 2021 3:22pm and written by Ian Nicolas Cigaral.
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