This is over 40 percent more than the P13.57 billion generated by Ayala Land from AREIT’s P13.57 billion initial public offering last August.
RLC bared its plans to “infuse a significant number of its existing office buildings into the new REIT company” last week but it did not reveal how many of its buildings would be stashed in the planned IPO.
Abacus Securities reported that RLC planned “to inject 15 of its 25 office buildings into a REIT with total GLA (gross land area) that may exceed 400,000 square meters.”
“Assuming a 20 percent discount to the valuation of AREIT earlier this year, the valuation for RLC’s REIT will be close to P58 billion which would be nearly two-thirds of the company’s current market cap,” said Abacus.
This means RLC could raise at least P19 billion based on the minimum 33 percent public offering of companies doing an IPO.
That’s a lot of cash for the RLC boss to use for expansion.