(Merkado Barkada) – July 27, 2021 – 8:45am

Filinvest Land [FLI 1.11 unch] programs to transfer three properties to FILRT within 12-18 months of Filinvest REIT’s [FILRT 7.00] IPO, which is scheduled for August 12.

The a few buildings are PBCom in Makati, Axis tower 2 in North Gate Cyberzone in Alabang, and Cebu tower 2 in Cebu IT Park. The structures have a blended GLA of 103,000 square metres, which, once transferred, would enhance FILRT’s total GLA by 34%.

FILRT is the next of our current and potential REITs to reveal just about anything like a write-up-IPO acquisition system Barkadans will keep in mind how AREIT [AREIT 36.00 1.10%] included its publish-IPO acquisition of the Teleperformance Cebu developing, and then went on to insert an additional 200,000 square metres in a transfer from Ayala Land [ALI 32.50 1.96%] earlier this yr. 

DDMP [DDMPR 1.80 3.74%] has been on the PSE for four months previously, and has nevertheless to include to its portfolio by acquisitions or transfers, and the two other pre-IPO REITs, Megaworld’s REIT [MREIT 22.00] and RL Business REIT [RCR 7.31], launched REIT plans that lack insight into the respective company’s post-IPO acquisition techniques.

MB Base-LINE

The FILRT IPO is 100% secondary, which usually means that all of the cash lifted will go straight to FLI, the sponsor/dad or mum company of FILRT. This means that FILRT will be “born” with very tiny in the way of doing work funds, enable by itself more than enough reserves to obtain the buildings from FLI in hard cash.

This signifies that, like ALI and AREIT have performed, FLI and FILRT will possible interact in some sort of shares-for-property swap in which FILRT will concern new primary shares to FLI in trade for the a few buildings. This will be a dilutive function but it shouldn’t be as well much of a challenge for investors, presented the valuations of the houses coming in are not wonky and too tilted in FLI’s favor (at FILRT investors’ expenditure).

The intriguing little bit from the Manila Common report is that the FILRT agent said that this initial 3-developing infusion is just a single portion of the 315,000 square metres of home that FILRT has discovered in the FLI portfolio for eventual transfer to FILRT. It’s also attention-grabbing to note that FILRT will start general public existence with 36.74% of its shares in community arms, which is in fact rather near to the 33.33% bare minimum general public ownership level established by the REIT Regulation and its associated applying regulations and laws.

I do not know the particulars of the transaction but, but unless I’m lacking anything, this transaction would likely have to have FILRT to do a observe-on presenting or stock rights featuring to carry its general public ownership degree up to the place it could issue a substantial plenty of batch of new shares to FLI for the qualities. Subsequent fairly intently in AREIT’s footsteps, perhaps!

 

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