Robinsons Land's RL Commercial REIT Gets SEC Approval; Valued at Up to 72.7 Billion at Maximum Price
It's poised to be the "largest REIT by portfolio valuation."
(SPOT.ph) You now have more options for investing in real estate without having to purchase actual property through Robinsons Land Corporation. The Securities and Exchange Commission has given the approval to RL Commercial REIT, Inc., a real estate investment trust, for its initial public offering of P26.67 billion at maximum price. It has a proposed offering of up to 3.34 billion common shares at a maximum offer price of P7.31 per share, with an over-allotment option of up to 305 million common shares. It's the fourth REIT to get approval, after Ayala Land’s AREIT Inc., DoubleDragon Properties’ DDMP REIT Inc., and Filinvest REIT Corporation.
What Is a Real Estate Investment Trust?
A real estate investment trust is a company that invests primarily in income-generating real estate assets. You may be more familiar with mutual funds, which is similar in a sense with REIT since they're both types of pooled investment. And like most investments in the Philippines, it can be traded in the Philippine Stock Exchange.
Buying and selling REITs is like buying and selling physical property, but it's obviously more affordable than buying actual real estate property. It lets you earn through income-generating real estate assets (a.ka. commercial spaces) since REITs are required to distribute income to investors like yourself through dividends.
RL Commercial REIT, Inc. as an Investment
RL Commercial REIT, Inc. is poised to be "largest REIT by portfolio valuation," according to a press release from Robinsons Land. This promise comes from the fact that it has the most geographically diversified office REIT in the country with a total gross leasable area of 425,315 square meters. Their real estate assets are located in central business districts across Metro Manila, such as Makati, Pasig, Quezon City, and Taguig; and other business hubs in the Philippines like Naga, Tarlac, Cebu, and Davao. Most tenants of RCR properties are from the BPO industry as well as information technology and business process management.
“We are committed to providing an excellent customer experience and satisfaction by offering and maintaining office projects of high quality and reliability, meeting the evolving needs of our customers,” the company stated in the REIT Plan submitted to the Securities and Exchange Commission.
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