Gokongwei-led RL Commercial REIT (RCR) will dominate the country’s real estate investment trust (REIT) sector with the largest shopping mall portfolio, following a P33.9 billion asset infusion from owner Robinsons Land Corp., according to stockbrokerage house AP Securities Inc.
Jose Antonio Cipres, AP Securities research analyst, said the asset injection marks a major diversification for RCR, which still trails competitor AREIT of Ayala Land Inc. in overall leasing space.
“[W]hile RCR remains second to AREIT in terms of total GLA (gross leasable area), the transaction will make it second to none in terms of its mall portfolio, which is now 278,526 square meters versus AREIT’s 217,340 sqm,” he added.
Positive view
“We have a positive view on RCR’s diversification away from the offices segment, which remains under pressure from elevated vacancy rates, and gives it exposure to the consumer space in which we are more optimistic,” Cipres added.
Largest reach
In a separate statement, RCR said the asset injection involves 11 malls and two offices.
These are Robinsons Novaliches, Robinsons Cainta, Robinsons Luisita, Robinsons Cabanatuan, Robinsons Lipa, Robinsons Sta. Rosa, Robinsons Imus, Robinsons Los Baños, Robinsons Palawan, Robinsons Ormoc and Cybergate Davao.
The two offices are Giga Tower in the Bridgetowne Destination Estate, Quezon City, and Cybergate Delta 2 in Davao City.
“After the infusion, RCR will remain as the Philippine REIT with the widest geographical reach, with assets in 18 key locations,” the company said.
Management’s view
RCR said the high-quality properties were chosen for their dividend potential.
“The planned asset infusion will diversify our predominantly office asset portfolio with the inclusion of mall assets,” RCR president and CEO Jericho Go said.
“This is in line with RCR’s commitment to shareholders to continuously grow the company,” he added.
What’s next?
Robinsons Land will inject the assets in exchange for 4.99 billion RCR shares at P6.80 each, which was a 36 percent premium when the transaction was announced.
The company will seek the go-signal from regulators, which it targets to receive within the year.
Miguel R. Camus has been a reporter covering various domestic business topics since 2009.
