Robinsons Land to transfer 11 malls, 2 office buildings to REIT arm

Robinsons Land Corp. (RLC), a property developer, will inject 11 shopping malls and two office buildings worth P33.91 billion into its real estate investment trust unit, RL Commercial REIT Inc. (RCR), through a property-for-share swap deal.

The deal involves RLC infusing 11 commercial centers with 278,526 square meters (sq m) of leasable space and two office buildings with 68,803 sq m to RCR.

In exchange, RLC will subscribe to 4.987 billion primary common shares of RCR at a price of P6.80 per share.

The malls included in the deal are Robinsons Novaliches, Robinsons Cainta, Robinsons Luisita, Robinsons Cabanatuan, Robinsons Lipa, Robinsons Sta. Rosa, Robinsons Imus, Robinsons Los Baños, Robinsons Palawan, Robinsons Ormoc and Cybergate Davao.

The two office assets are Giga Tower in Bridgetowne Destination Estate, Quezon City and Cybergate Delta 2 in Davao City.

RCR said the assets were chosen based on investment criteria to maximize dividend yield by adding high-quality commercial properties that complement its existing portfolio of 16 premium assets.

“The planned asset infusion will diversify our primarily office portfolio with the inclusion of mall assets. This aligns with RCR's commitment to shareholders to continuously grow the company,” said RCR president Jericho Go.

The asset infusion will increase RCR's total gross leasable space (GLA) by 347,329 sq m, bringing its total GLA to 827,808 sq m.

RCR has the widest geographic reach among listed REITs in the Philippines, with assets in 18 key cities and provinces.

“The transaction is subject to approval by relevant regulatory bodies and will be presented for approval at a special shareholders meeting,” RCR said.

The company aims to secure regulatory approvals for the property-for-share swap within the year.

RCR posted stable financial results in the first quarter of 2024, with total unaudited revenues of P1.43 billion. Net income in the quarter amounted to P1.12 billion, translating to a net margin of 79%.

After the infusion, RLC's investment portfolio will include 1.4 million sq m of leasable mall spaces, about 253,000 sq m of remaining leasable office spaces, 26 hotels with a total of 4,243 room keys and 244,000 sq m of leasable logistics facilities.