VistaREIT Inc. (VREIT), the commercial real estate investment trust of integrated property developer Vista Land & Lifescapes Inc., is banking on the strength of its synergy with the Villar Group’s retail ecosystem for a steady revenue stream.
With its strong portfolio of Villar-owned community-based malls, VREIT is optimistic about its prospects amid a reinvigorated economy due to the easing of restrictions.
The firm noted in a statement that the Villars’ retail group provides it a strong foundation as the various retail chains account for 68 percent of VREIT’s total Portfolio Gross Leasable Area (GLA) and contributed 77 percent of rental income for December 31, 2021.
With an appraised P35.95 billion portfolio valuation, VREIT banks on a strong portfolio of 10 community malls and two PEZA accredited office buildings. This makes it the first REIT in the country that offers a majority of community malls in its portfolio.
It has 256,404 square meters of aggregate GLA—with 97 percent total occupancy rate as of today and 5.09 years of weighted average lease expiry (WALE).
VistaREIT’s initial assets consist of SOMO, A Vista Mall; Starmall San Jose del Monte; Vista Mall General Trias; Vista Mall Tanza; Vista Mall Imus; Vista Mall Las Piñas; Vista Mall Las Piñas Annex; Vista Mall Pampanga; Vista Mall Antipolo; Vista Mall Talisay Cebu; Vistahub BGC; and Vistahub Molino.
All, except Vistahub BGC, are located within or near Vista Land developments, making the VistaREIT a more viable investment opportunity because it enjoys a captive market through the residential communities developed by the Villar Group.
Based on its financial records, the Villar-owned community malls posted an increase in rental income in 2020 compared to other mall players despite the challenges brought about by the COVID-19 pandemic.
Officials attributed the community malls’ positive performance to its strategic location and the tenant mix of the malls that were focused on providing majority essential items during the pandemic.
The Villar Group’s Vista Malls and Starmall, including the publicly-listed AllHome and AllDay, were quick to adapt to consumer behavior during the pandemic. They came out with online shopping apps, and personal shoppers.
The stores also expanded their various delivery hubs to be able to cope with customers’ demands vis-a-vis the strict observance of government imposed health protocols.
Vista Malls’ anchor tenants include AllHome and AllDay supermarkets, recreation areas, amusement centers, pharmacy, food and cinema. Essential tenants are the supermarkets, home improvement/appliance stores, pharmacy and food and financial services.
VREIT has filed for a P9.18 billion initial public offering, consisting of up to 3.33 billion secondary common shares at a maximum price of up to P2.50 per offer share. It has an over-allotment option of up to 333.75 million secondary common shares.
For the VREIT IPO, the offer shares will be sold by Vista Land’s subsidiaries — Masterpiece Asia Properties Inc., Manuela Corporation, Communities Pampanga Inc., Crown Asia Properties Inc., and Vista Residences Inc.
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The article was originally published in Manila Bulletin and written by James A. Loyola.
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