The board of Filinvest Land Inc. (FLI) has decided to increase the number of shares it will offer via the initial public offering (IPO) of its unit Cyberzone Properties Inc. (CPI), which it will transform into a real estate investment trust (REIT).
The Gotianun-led property developer said on Monday that it will increase its main offer shares by 3.42 million shares to 1.63 billion shares, which will be sold through secondary offering.
Its over-allotment option, meanwhile, was increased by 342,494 shares to 163.41 million shares.
The said shares were priced at P8.30 per share or total proceeds of P14.88 billion.
The said secondary offering represent at least a third of the outstanding capital stock of Cyberzone after the increase in its authorized capital stock to 7.13 billion common shares, with par value of P0.50 per share, the company said.
The company earlier said it will place certain office buildings leased to business process outsourcing (BPO) firms in Alabang, Muntinlupa and Cebu in Cyberzone’s REIT.
“We are looking forward to listing CPI as a REIT company because we believe that this will unlock the value of our office leasing business. Filinvest has a growing portfolio of recurring income projects and significant prime office properties in Alabang, Cebu and Clark to continue to grow this business. A REIT listing will enable acceleration of the growth of this business line,” FLI president and CEO Josephine Gotianun-Yap said earlier.
Most of CPI’s buildings are located in the 18.7-hectare Northgate Cyberzone, a Philippine Economic Zone Authority (PEZA) Special Economic Zone in Filinvest City in Alabang, Muntinlupa, while some are also located in Cebu Cyberzone, also an economic zone in Lahug, Cebu City.
Northgate Cyberzone has various supporting amenities and provides competitive rental rates which are significantly lower than the rates in the central business districts of Makati and Bonifacio Global City in Taguig.
Northgate also features the country’s largest district cooling system to date that helps reduce energy consumption of its property buildings, provides greater efficiency, lowers the initial capital investment, reduces carbon dioxide emissions and enhances real estate value by freeing up building space for other uses.
Filinvest’s BPO buildings have continued to be fully operational during the lockdown caused by the Covid-19 pandemic. CPI’s office rental revenues increased by 16 percent year-on-year in January to September 2020 to P2.46 billion.
The Gotianun group’s Filinvest is one of the pioneer providers of office space to the BPO industry in the Philippines and currently has 43 operating and under construction office buildings covering over 824,000 square meters of gross leasable area.
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