FILRT expands retail reach with P6.26-B Festival Mall deal

Festival Mall, a popular shopping and lifestyle destination in southern Metro Manila, is now under Filinvest REIT Corp. (FILRT) after the company completed a P6.26-billion property-for-shares transaction with its sponsor, Filinvest Land, Inc. (FLI).

In separate stock exchange filings on Thursday, the companies confirmed that they signed a Memorandum of Agreement and a Deed of Exchange yesterday to seal the deal.

Under the agreement, FILRT issues 1.63 billion primary common shares to FLI at P3.85 per share — a 30 percent premium over FILRT’s 30-day volume-weighted average price of P2.94 per share—in exchange for ownership of Festival Mall - Main Mall in Filinvest City, Alabang.

The transaction values the mall, including its building and certain machinery and equipment, at P6.26 billion.

With the acquisition, FILRT’s portfolio expanded by 37 percent to 452,310 square meters, increasing occupancy from 83 percent to 88 percent and extending its Weighted Average Lease Expiry from 7.3 years to 14.6 years.

The transaction also diversifies FILRT’s revenue mix, with its portfolio now comprising 67 percent offices, 27 percent retail (Festival Main Mall), and 6 percent hospitality (Crimson Boracay lot).

Meanwhile, FLI’s stake in FILRT increases from 51.06 percent to 63.27 percent. With the deal now in effect, both companies, led by the Gotianun Family, expect the deal to boost dividend payouts.