Filinvest Land Inc. has firmed up its plans for its real estate investment trust with a planned initial public offering of up to P14.88 billion worth of secondary common shares.

     In a disclosure to the Philippine Stock Exchange, FLI said its Board of Directors has approved the IPO of its subsidiary Cyberzone Properties Inc. of 1.63 billion shares owned by FLI at a price of up to P8.30 per share.

The IPO is subject to the registration requirements of the Securities and Exchange Commission, the listing requirements of the PSE, and requirements of the revised implementing rules and regulations of the REIT Act of 2009.

The IPO shares represent at least one third of the outstanding capital stock of Cyberzone after the increase in its authorized capital stock to P7.13 billion divided into 14.26 billion common shares with a par value of P0.50 per share.

There will also be an over-allotment option pursuant to which a stabilizing agent or its relevant affiliate has the right to purchase up to 163.08 million secondary shares.

Filinvest is one of the pioneer providers of office space to the business process outsourcing (BPO) industry in the Philippines and currently has 43 operating and under construction office buildings covering over 824,000 sqm of gross leasable area.

A certain number of operating office buildings, including buildings leased out to traditional and multinational BPO companies, will comprise the property portfolio for the REIT Company.

These office buildings are located in Northgate Cyberzone in Filinvest City, Alabang and Filinvest Cyberzone Cebu in Cebu City.

Northgate Cyberzone in Filinvest City is an 18.7 hectare PEZA-registered business park designed to cater primarily to BPO companies.

It is home to the Philippines’ largest district cooling system to date that helps reduce energy consumption, provides greater efficiency, lowers the initial capital investment, reduces carbon dioxide emissions and enhances real estate value by freeing up building space for other uses. 

Filinvest’s BPO buildings have continued to be fully operational during the COVID-19 pandemic and CPI’s office rental revenues increased by 16 percent year-on-year in the first nine months of 2020 to P2.46 billion.

“We are looking forward to listing CPI as a REIT company because we believe that this will unlock the value of our office leasing business,” FLI President and CEO Josephine Gotianun-Yap said.

She added that, “Filinvest has a growing portfolio of recurring income projects and significant prime office properties in Alabang, Cebu and Clark to continue to grow this business.  A REIT listing will enable acceleration of the growth of this business line.


Source: Manila Bulletin (https://mb.com.ph/2021/03/10/fli-eyes-p14-b-reit-ipo/?utm_source=rss&utm_medium=rss&utm_campaign=fli-eyes-p14-b-reit-ipo)