RLC raises P7B from RCR share sale at P7.40 each

Property giant Robinsons Land Corp. (RLC) has sold 945.95 million common shares in real estate investment trust arm RL Commercial REIT Inc. (RCR) in a block transaction valued at P7 billion.

The Gokongwei-led developer told the local bourse on Tuesday that the shares had been placed out at P7.40 per share.

“With this placement, the public float of RCR increased to 8.64 billion common shares or 44.18 percent of the total issued and outstanding common shares,” RLC said.

Prior to this equity deal, RCR’s public ownership stood at 39.34 percent.

The company said the transaction was anchored by high-quality institutional investors, comprising both local and international participants.

RLC said the placement shares were exempt from registration under the Securities Regulation Code. They were likewise offered and sold outside the United States under the Regulation S framework of the US Securities Act of 1933, as amended.

Settlement of the transaction is scheduled on Jan. 29, under a secondary block trade agreement, the company said.

RLC added that it would submit the required reinvestment plan detailing the use of proceeds from the sale of the placement shares.

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The block sale was timely pursued following Monday’s announcement that RCR would be added to the 30-member Philippine Stock Exchange Index (PSEi).

Shares of RCR fell by 3.57 percent to close at P7.56 per share on Tuesday as the block sale had been priced at a discount to market prices. The real estate investment trust (REIT) has a market capitalization of about P1.53 billion.

The move ushers a Gokongwei-backed REIT into the PSEi, expanding the presence of REITs in the benchmark. This is the second REIT to debut on the stock barometer, after Ayala-led AREIT Inc.