Robinsons Land Raises P7.75 Billion via Oversubscribed REIT Share Placement
Robinsons Land Corp. (RLC) has successfully raised a substantial P7.75 billion from the overnight block placement of one billion common shares in its real estate investment trust (REIT) unit, RL Commercial REIT, Inc. (RCR).
This significant equity transaction, announced by the parent company in a disclosure on Tuesday, involved selling the shares at a price of P7.75 per share, reaching the top end of the previously marketed price range.
The exceptional demand for the RCR shares was clearly evident as the offering was oversubscribed by a remarkable 3.7 times, a level of interest that ultimately prompted RLC to increase the final transaction size to one billion common shares from its initial offering plan.
Following the successful completion of this large-scale sale, RCR’s public float—the portion of shares held by the public— saw a significant increase, rising to 39.34 percent, which is equivalent to 7.69 billion common shares now available in the market.
This placement is a strategic move by Robinsons Land to enhance the liquidity and market presence of its REIT subsidiary.
RLC specifically highlighted the quality of the participation, noting that “The transaction saw strong participation from both local institutional investors and fresh foreign accounts,” underscoring the broad appeal of RCR’s assets and its promising yield potential.
The transactions were expertly executed via exempt placements, complying with the Philippine Securities Regulation Code and offered offshore under Regulation S of the US Securities Act of 1933, ensuring full legal compliance across multiple jurisdictions.
Strategic Reinvestment and Strengthening RCR’s Public Float
The capital injection secured by Robinsons Land Corp. is earmarked for reinvestment, adhering to strict regulatory requirements, while the increase in the public float of RCR enhances the REIT’s market standing and accessibility.
The substantial P7.75 billion in gross proceeds from the sale of RCR shares are scheduled for settlement on September 25, in line with the terms stipulated under a Secondary Block Trade Agreement.
Robinsons Land stated it would proceed to submit a formal reinvestment plan that provides explicit details on how the funds will be used, ensuring strict compliance with all pertinent regulatory requirements mandated for REIT sponsors.
Generally, these proceeds are reinvested into new or existing income-generating real estate assets, a practice that allows the sponsor, RLC, to grow its asset base and potentially contribute more properties to the REIT in the future, fostering mutual growth.
The primary goal of RLC in undertaking this transaction was to significantly increase the public float of RL Commercial REIT.
A higher public float is crucial for attracting larger institutional investors, improving stock liquidity, and satisfying the regulatory requirements that often link a company’s inclusion in major stock market indices to its percentage of publicly held shares.
This move by Robinsons Land signals a strong commitment to maintaining RCR as a premier, highly liquid investment vehicle in the Philippine market, benefiting both the parent company and the REIT’s unitholders.
Expert Coordination Facilitates Successful International Placement
The success of the massive block placement, particularly its oversubscription and reach into fresh foreign accounts, was largely a result of meticulous coordination and execution by a dedicated team of both domestic and international financial institutions.
BPI Capital Corp. played a central role in the transaction, serving simultaneously as the sole global coordinator, a joint bookrunner, and the domestic placement agent, effectively leading the overall execution strategy within the Philippines.
The successful outreach to international investors, which was key to achieving the 3.7-times oversubscription rate, was managed by highly reputable international partners.
J.P. Morgan Securities Plc and Maybank Securities Pte. Ltd. served as joint bookrunners and international placement agents, leveraging their extensive global networks to attract fresh foreign capital to RCR shares.
The strong international interest in the RL Commercial REIT validates the market’s positive perception of the quality of the underlying assets—predominantly premium office buildings— and the management expertise of Robinsons Land Corp. as the sponsor.
The highly efficient execution of this complex, cross-border equity transaction, which involved multiple jurisdictions and varied regulatory compliance requirements, underscores the sophistication and capacity of the Philippine capital markets and its financial intermediaries to handle large-scale international offerings effectively.
The reinvestment of these proceeds into strategic assets by Robinsons Land is expected to further solidify RCR’s position in the Philippine REIT sector.
