By Beatriz Marie D. Cruz, Reporter
GOKONGWEI-LED developer Robinsons Land Corp. (RLC) raised P7.75 billion from an overnight block sale of one billion shares in its real estate investment trust (REIT) unit RL Commercial REIT, Inc. (RCR), which, according to analysts, will provide capital for long-term expansion and could enable RLC to inject additional assets into the REIT.
“The P7.75 billion raised from the overnight block placement in RCR gives RLC more room to drive growth, reduce debt, and fuel long-term expansions,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a Viber message.
“It also opens up market opportunities in residential, commercial, and mixed-use developments, as consumer behavior shifts and new trends emerge,” he added.
RLC told the stock exchange on Tuesday that the shares were sold at P7.75 each, at the top end of the marketed range, and that the offering was oversubscribed by 3.7 times.
“The transaction saw strong participation from both local institutional investors and fresh foreign accounts,” the company said.
COL Financial Group, Inc. Chief Equity Strategist April Lynn Lee-Tan said the proceeds will fund RLC’s capital expenditures (capex) and enable further asset injections into RCR, which could be dividend accretive.
“It’s also good for RCR, since it will open the door for more asset injections for RLC, which is dividend accretive,” she said.
Following the sale, RCR’s public float rose to 39.34%, equivalent to 7.69 billion shares.
Its current portfolio includes 828,000 sq.m. of gross leasable area (GLA), comprising 12 malls with 289,000 sq.m. GLA and 17 offices with 539,000 sq.m. GLA.
RLC’s sale follows a P30.67-billion property-for-share swap that infused nine commercial projects with a combined 324,107.75 sq.m. GLA into RCR.
Analysts, however, cautioned that RLC must carefully manage capital allocation and market timing to sustain earnings growth.
The transaction was exempt from registration under the Philippine Securities Regulation Code and offered offshore under Regulation S of the US Securities Act of 1933.
BPI Capital Corp. acted as sole global coordinator, joint bookrunner, and domestic placement agent, while J.P. Morgan Securities Plc and Maybank Securities Pte. Ltd. were joint bookrunners and international placement agents.
Proceeds are scheduled for settlement on Sept. 25.
RLC said it will submit a reinvestment plan detailing the use of proceeds, in line with regulatory requirements.
On Tuesday, RLC shares closed flat at P15.26, while RCR shares fell 4.53% or 37 centavos to P7.80 each.
