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Real estate developer Filinvest Land Inc (FLI) is expanding the real estate investment trust (Reit) universe in the Philippines as it transitions its subsidiary Cyberzone Properties Inc (CPI) into a Reit company. Following approval by its board of directors, FLI says that CPI is intended to be listed on the Philippine Stock Exchange (PSE) in accordance with minimum public ownership requirements under Philippine Securities Regulations and the Reit Act of 2009, as well its implementation. Rules and regulations.
FLI is one of the pioneering providers of office space for the business process outsourcing (BPO) industry in the Philippines and currently has 43 office buildings in operation and under construction covering more than 824,000 square meters of gross leasable area.
According to a PSE filing on January 21, FLI says that a certain number of operational office buildings, including buildings leased to traditional and multinational BPO companies, will comprise the Reit company’s portfolio of properties.
These office buildings are located at Northgate Cyberzone in Filinvest City, Alabang and Filinvest Cyberzone Cebu in Cebu City. Northgate Cyberzone in Filinvest City is an 18.7 hectare business park registered with the Philippine Economic Zone Authority (PEZA) and designed to primarily serve BPO companies. It is home to the largest district refrigeration system in the Philippines to date that helps reduce energy consumption, provides greater efficiency, reduces initial capital investment, reduces carbon dioxide emissions, and improves the value of real estate by freeing up building space for other uses.
Filinvest’s BPO buildings remained fully operational during the Covid-19 pandemic, and CPI’s office rental income increased 16% year-on-year in the first nine months of 2020 to 2.46 billion pesos (US $ 51.25 million ).
Commenting on the proposed listing on Reit, FLI President and CEO Josephine Gotianun-Yap says, “We look forward to listing CPI as a Reit business because we believe this will unlock the value of our office leasing business. Filinvest has a growing portfolio of recurring income projects and significant head office properties in Alabang, Cebu and Clark to continue growing this business. A listing on Reit will accelerate the growth of this line of business. “
Ayala Land, one of the largest real estate developers in the country, listed the first Philippine Reit (AREIT) in August 2020 after completing its initial public offering (IPO) of 13.6 billion pesos. Another real estate developer, DoubleDragon Properties, announced in November last year the filing of a registration statement with the Securities and Exchange Commission covering the IPO of DDMP REIT, which is expected to raise 14.71 billion pesos.
