Filinvest REIT Inc., the real estate investment trust (REIT) of the Gotianun Group, said Tuesday that its shareholders have approved the issuance of 1.63 billion primary shares to its main sponsor, Filinvest Land Inc.
The shares are valued at a total of P6.26 billion, or P3.85 each, reflecting a 30 percent premium over the 30-day weighted average price of P2.94 per share.
This issuance is part of a property-for-share swap, with Filinvest Land contributing ownership of the main shopping mall of its Festival Mall in Alabang, Muntinlupa City. The transaction is tax-free, making it an efficient strategic move for both parties.
The inclusion of Festival Mall’s main mall into Filinvest REIT is expected to significantly enhance the company’s earnings potential, particularly from its office, retail, and hotel and resort assets. With this addition, Filinvest REIT’s gross leasable space will increase by 37 percent, reaching a total of 425,210 square meters.
The move underscores Filinvest REIT’s strategy to expand its portfolio and maximize income-generating assets, positioning the company for future growth in the competitive real estate market.
