Robinsons Land, the real estate arm of the Gokongwei family’s JG Summit, plans to inject 25 billion pesos worth of properties into its unit RL Commercial REIT (RCR) after seeing improved profits in 2023. RL Commercial REIT recently raised about 8.5 billion pesos through the sale of shares to help fund the acquisition of these properties. The plan includes transferring office buildings, shopping malls, hotels, and warehouses to RL Commercial, increasing the REIT’s gross leasable area by about 60%.
With this move, Robinsons Land aims to fuel the growth of RCR by adding high-quality assets to complement its existing portfolio. Lance Gokongwei, the chairman, president, and CEO of Robinsons Land, expressed his confidence in this strategy to maximize shareholder value for both Robinsons Land and RL Commercial. The success of this plan is crucial as it aligns with Robinsons Land’s vision to continue expanding its presence in the real estate market in the Philippines.
Robinsons Land reported a 24% increase in net profit in 2023, reaching an all-time high of 12 billion pesos. This growth was mainly driven by the success of its shopping malls and hotels. The company owns over 1.6 million square meters of shopping mall space, 270,000 square meters of offices, 227,000 square meters of logistics facilities, and 26 hotels with more than 4,200 rooms. The positive performance of these properties has contributed to Robinsons Land’s overall profitability.
JG Summit, the parent company of Robinsons Land, has diverse interests in airlines, food and beverage, banking, petrochemicals, and utilities. The conglomerate was founded by the late billionaire John Gokongwei in 1954 as a corn starch factory. Following his death in 2019, his six children inherited his fortune. With a combined net worth of $3 billion, the Gokongwei siblings were ranked No. 7 on the list of the Philippines’ 50 Richest. This wealth has allowed them to continue expanding and diversifying their business interests.
The injection of properties into RL Commercial REIT is part of Robinsons Land’s strategic plan to enhance shareholder value and strengthen its position in the real estate market. By adding high-quality assets to RCR’s portfolio, the company aims to maximize returns for its shareholders while also expanding its footprint in the Philippines. This move aligns with the vision of Robinsons Land to remain a key player in the country’s real estate sector and drive further growth in the years to come.
As one of the largest developers in the Philippines, Robinsons Land’s success in the real estate market is crucial for its parent company, JG Summit, and the Gokongwei family. The strategic decisions made by Robinsons Land, including the injection of properties into RL Commercial REIT, are key factors in driving the company’s growth and profitability. With a strong portfolio of assets and a commitment to maximizing shareholder value, Robinsons Land is well-positioned to continue its success in the real estate sector and contribute to the overall growth of the Gokongwei family’s business empire.
