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The Gotianun Group is transferring ownership of its flagship Festival Mall-Main Mall in Filinvest City, Alabang, Muntinlupa City to Filinvest REIT Corporation in a P6.26 billion deal that marks the real estate investment trust’s entry into the retail leasing business.
In a disclosure to the Philippine Stock Exchange, Filinvest Land Inc. said it is selling the 26 year-old Festival Mall to FILRT in exchange for 1.63 billion FILRT shares at an issue price of P3.85 per share under a tax-free property-for-share swap transaction.
"The Transaction fulfills FLI’s commitment as the sponsor of FILRT to continually support the growth and expansion of its REIT portfolio through the infusion of high-quality income generating real estate assets," FLI said.
I added that, upon the Securities and Exchange Commission’s approval of the transaction, FLI and FILRT shall execute a lease agreement for the Property.
In a separate disclosure, FILRT said the issue price is a 30 percent premium over the 30-day volume weighted average price of P2.94 per FILRT share.
“Pursuant to the approval of the Transaction, the Board approved the conduct of a SSM (special stockholders’ meeting) to be held on March 4, at 10:00am.
The record date for the determination of stockholders entitled to notice and right to vote at the SSM is February 10, 2025,” the firm said.
FILRT’s diversification into mall leasing comes after its expansion into the hospitality space with the acquisition of 2.9 hectares of land owned by Filinvest Development Corporation (FDC) in Boracay island for P1.05 billion in cash.
The land is being leased by Boracay Seascapes, Inc. (BSI), the building owner of Crimson Resort & Spa Boracay and a subsidiary of FDC.
FILRT President and CEO Maricel Brion-Lirio said this is the company’s first asset infusion since its initial public offering and “not only increases the distributable income to our shareholders in the immediate term but also supports our goal of delivering stable dividends and increasing the potential for capital appreciation in the longer term.”
Brion-Lirio said in November last year that Filinvest REIT aims to double its portfolio over the next three years through asset infusion from the Filinvest Group as well as through acquisitions.
“These are grade A office buildings, retail assets under the Filinvest malls and township portfolio and hotels under the Crimson and West brands in key tourist destinations of the country.
“We are also open to infusions of commercial assets from third parties outside of the Filinvest Group granted it will pass assessment and investment criteria in closing,” she said.
