ROBINSONS Land Corp. (RLC) said it has completed a transaction to infuse P33.92 billion worth of commercial assets into its real estate investment trust (REIT) unit RL Commercial REIT, Inc. (RCR).
RLC consummated the property-for-share swap deal with RL Commercial REIT, Inc. (RCR) via the execution of the deed of assignment on July 16 for the asset infusion, the listed REIT said in a regulatory filing on Wednesday.
The deal involves the infusion of 13 commercial assets totaling 347,329 square meters (sq.m.) of gross leasable area into RCR in exchange for RLC’s subscription to 4.99 billion RCR primary common shares at P6.80 apiece.
“With this infusion, the portfolio size of RCR will be increased from approximately 480,479 sq.m. to approximately 827,808 sq.m. or a growth of 72%,” RCR said.
“After the infusion, RLC shall own 65.90% of the enlarged total shares of RCR,” it added.
The covered properties include Robinsons Novaliches, Robinsons Cainta, Robinsons Luisita, Robinsons Cabanatuan, Robinsons Lipa, Robinsons Sta. Rosa, Robinsons Imus, Robinsons Los Baños, Robinsons Palawan, and Robinsons Ormoc.
The deal also includes Cybergate Davao, Giga Tower in the Bridgetowne Destination Estate, Quezon City, and Cybergate Delta 2 in Davao City.
RCR President and Chief Executive Officer Jericho P. Go previously said that the asset infusion seeks to diversify the company’s asset portfolio with the addition of mall assets.
“This is in line with RCR’s commitment to shareholders to continuously grow the company,” Mr. Go said.
RCR said the asset infusion will bring higher distributable income for shareholders.
“The properties are expected to contribute further to RCR’s cash flows, increasing its dividends per share,” RCR said.
For the first quarter, RCR saw a 4% increase in its net income to P1.12 billion.
On Wednesday, RCR shares were unchanged at P5.63 apiece while RLC stocks rose by 0.53% or eight centavos to P15.20 per share. — Revin Mikhael D. Ochave
