By Beatriz Marie D. Cruz, Reporter
GOKONGWEI-LED property developer Robinsons Land Corp. (RLC) has completed the overnight block placement of shares in its real estate investment trust (REIT), raising proceeds of around P7 billion to support its expansion plans.
In a stock exchange disclosure on Tuesday, RLC’s board of directors authorized the sale of 945.95 million common shares of RL Commercial REIT, Inc. (RCR).
The sale had a transaction price of P7.40 per share and is anchored by high-quality institutional local and international investors, the company said.
The proceeds from the block sale are to be settled on Jan. 29 under a Secondary Block Trade Agreement, RLC also said.
Following this placement, the public float of RCR increased to 8.64 billion common shares or 44.18% of the total issued and outstanding common shares.
The company will submit a reinvestment plan outlining the use of proceeds from the transaction.
The shares were sold via transactions exempt from registration under the Securities Regulation Code (SRC) and offered offshore under Regulation S of the US Securities Act of 1933. They will not be registered with the Securities and Exchange Commission.
“Any future offer or sale of the placement shares by the buyers thereof in the Philippines is subject to the registration requirements of the SRC unless such offer or sale qualifies as an exempt transaction in accordance with the applicable requirements of the SRC,” RLC added.
China Bank Capital Corp. Managing Director Juan Paolo E. Colet said the block transaction signals that RLC is looking to infuse additional properties into its REIT.
“The block sale helps raise the public float of RCR, giving the company enough headroom for future asset-for-share swaps with RLC,” he said in a Viber message.
The share sale proceeds would also provide RLC with fresh capital for its project pipeline, Mr. Colet said.
The company earlier said it is aiming to reach P25 billion in net income by 2030, in time for its 50th anniversary.
“The block sale allows RLC to monetize part of its REIT stake to fund its expansion pipeline and improve liquidity now that passive funds tracking the index will eat up more RCR shares,” Shawn Ray R. Atienza, equity research analyst at AP Securities, Inc., said in a Viber message.
“However, the transaction could exert downward pressure on RCR’s price short-term given the timing of the sale,” he added.
Last year, RLC raised P7.75 billion from an overnight block sale of one billion common shares of RCR at P7.75 each.
In June, the company also infused nine lifestyle malls into RCR, bringing its total assets to 38 and increasing its gross leasable area to 1.15 million square meters.
On the local bourse on Tuesday, RLC shares declined 0.54% or 10 centavos to close at P18.30 apiece, while RCR shares fell 3.57% or 28 centavos to P7.56 each.