GOKONGWEI-LED Robinsons Land Corp. (RLC) is infusing P33.9 billion worth of assets in its real estate investment trust, RL Commercial REIT Inc. (RCR), via a property-for-share swap that would add 11 malls and two office assets to the latter's portfolio.
In a stock exchange filing, RLC said that its board approved the deal on Wednesday, in which RLC will subscribe to nearly 5 billion primary common shares of RCR at a price of P6.80 per share.
The valuation was supported by an appraiser accredited by the Securities and Exchange Commission (SEC), and the bourse and a third-party fairness opinion, RLC added.
The swap involves 11 malls with a total leasable space of 278,526 square meters (sqm) in Novaliches, Cainta, Luisita, Cabanatuan, Lipa, Santa Rosa, Imus, Los Baños, Palawan, Ormoc and Cybergate in Davao.
Two office assets, Giga Tower in Quezon City and Cybergate Delta 2 in Davao City with an accumulated leasable space of 68,803 sqm, are also part of the swap.
The asset swap will increase RCR's total gross leasable area to 827,808 sqm from 480,790 sqm.
"The planned asset infusion will diversify our predominantly office asset portfolio with the inclusion of mall assets. This is in line with RCR's commitment to shareholders to continuously grow the company," RCR President and Chief Executive Officer Jericho Go said.
RCR will execute the deed of assignment with RLC and submit the application to the SEC following stockholder approval.
Revenues from the new assets will start accruing to RCR from April 1, 2024, pending regulatory approvals.
In the first quarter of 2024, RCR reported unaudited revenues of P1.43 billion and a net income of P1.12 billion, reflecting a net income margin of 79 percent.
Following the transaction, RLC's investment portfolio will include approximately 1.4 million sqm of leasable office spaces, 26 hotels with 4,243 room keys and 244,000 sqm of leasable logistics facilities.
The swap deal will be presented to RCR stockholders for approval on July 15, 2024, and the transaction is expected to be completed within the year.
Robinsons Land shares rose 8 centavos, or 0.51 percent, to close at P15.68 each on Thursday amid a 1.06-percent rise for the benchmark Philippine Stock Exchange index.
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