High income assets infused into VREIT

MANILA, Philippines — The Villar Group’s real estate investment trust or VREIT will infuse high-income generation assets into its portfolio, particularly the profitable assets of its sponsor, Vista Land & Lifescapes Inc. (VLL).

These include the Worldwide Corporate Center, the Vista Group’s prime office property and main office located in Mandaluyong City.

Vista Land’s commercial assets consist of 31 malls, seven office buildings and 69 commercial centers with a combined gross floor area (GFA) of 1.6-billion. VREIT assets account for over 20 percent of VLL’s total GFA.

In addition, VLL has about 3,000 hectares of raw land, also known now as the Vista Estates. VLL has also identified various locations that are suitable for commercial developments in the future.

VREIT’s initial portfolio is composed of 10 community malls and two PEZA-registered office buildings, with an aggregate gross leasable area (GLA) of 256,404 square meters.

Based on its plan, VREIT will offer up to 3.33-billion secondary common shares at a maximum offer price of P 2.50 per share, with an over-allotment option of up to 333.75-million secondary common shares.

The company plans to list by the middle of the year.

Tycoon Manuel Villar Jr., chairman of the Villar Group, said VREIT has a massive opportunity for growth since its inception comes as the Philippine economy recovers from the pandemic.

Under its comprehensive plan, VREIT will also focus on the competitiveness of VLL’s properties in the market when it comes to its lease rates.

“The lease rates are set to provide opportunities for growth. The VREIT can still maintain competitive pricing based on existing market rates,” it said.

At present, the Vista mall and office lease rates are relatively lower compared to its competitors.

VREIT also sees as a key advantage its working synergy with the Villar Group’s retail ecosystem, which includes the publicly listed AllHome and AllDay supermarkets, which are strategically located within the Villar Group’s housing communities around the country.

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The article was originally published in PhilStar Global and written by Iris Gonzales.