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Philippine billionaire Lance Gokongwei is boosting his family’s RL Commercial REIT by injecting approximately $580 million worth of shopping malls and offices, closing the gap between RL Commercial and Ayala Land’s AREIT, the largest listed commercial property REIT in the country. The Gokongwei family’s property arm, Robinsons Land Corp., will be selling 11 shopping malls and two offices to RL Commercial and will receive 5 billion shares priced at 6.80 pesos each in exchange for the assets, expanding RL Commercial’s portfolio by 72% to 827,808 square meters.

RL Commercial is set to benefit from the assets starting in April 2024, according to a filing with the Philippine Stock Exchange. This move will help diversify RL Commercial’s predominantly office asset portfolio by including mall assets, aligning with RCR’s commitment to continuously grow the company. In April, Robinsons Land infused 25 billion pesos worth of properties into the REIT, further bolstering its offerings.

The property-for-share swap will be subject to regulatory and shareholders approvals, with completion expected by the end of the year. This transaction will provide Robinsons Land with an additional avenue to raise funds for its expansion plans, with the company investing at least 22 billion pesos for expansion this year, matching its deployment in 2023. Despite the divestment, Robinsons Land still retains significant assets, including shopping mall space, office space, hotels, and logistics facilities.

In addition to its real estate assets, Robinsons Land’s parent company, JG Summit, has diverse interests in industries such as airlines, food and beverage, banking, petrochemicals, and utilities. Founded by the late billionaire John Gokongwei in 1954 as a corn starch factory, JG Summit is now managed by his six children—Lance, Robina, Lisa, Faith, Hope, and Marcia—who inherited his fortune following his passing in 2019. The Gokongwei siblings collectively have a net worth of $3 billion, ranking them at No. 7 on the list of the Philippines’ 50 Richest as of August last year.

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