Renewable energy supplier Citicore joins the emerging REIT sector with a unique IPO

Mergawide Construction Corp.’s privately held sister company, Citicore Power Corp., eyes raising P8 billion to P10 billion as it plans to offer its solar power assets through the first energy-focused REIT offering in the country by October this year.

Oliver Tan, the president of the green energy supplier, said the IPO, which will be under Citicore Energy REIT Corp., is in line with its bold plan to boost its portfolio to 1,500 Megawatts (MW) from its existing total solar power capacity of 168 MW by 2025 and become one of the country’s leading renewable energy producers.

Currently, Citicore operates eight solar power plants all over the country.

Aside from maximizing the real estate assets of its solar plants, the unique REIT IPO is seen to add variety to the existing options for investors eyeing to diversify and expand their portfolios.

“What we are offering is a diversification to the REIT products,” Tan said according to a report by the Philippine Daily Inquirer.

According to the definition of the PSE, a REIT is a stock corporation that owns and operates income-producing real estate or real estate-related assets. These companies may include office buildings, apartments, hotels, resorts, warehouses, shopping malls, and self-storage facilities. It is a type of investment instrument that provides a return to investors derived from rental income of the underlying real estate asset.

Currently, REIT companies that have listed in the Philippines are AREIT Inc. of Ayala Land Inc. and DDMP REIT of DoubleDragon Properties Corp.

Source:
https://business.inquirer.net