Vreit banks on shopping malls

Vistareit Inc. (Vreit), the real estate investment trust (REIT) of property developer Vista Land and Lifescapes Inc., said its revenue-generating portfolio will primarily consist of Villar-led community shopping malls.

The company said it sees as “a robust foundation” its synergy with Villar’s retail ecosystem as it accounts for 68 percent of Vista Land’s total portfolio’s gross leasable area (GLA) and contributed 77 percent of rental income for last year.

With an appraised P35.95-billion portfolio valuation, Vreit is banking on a strong portfolio of 10 community malls and two Philippine Economic Zone Authority-accredited office buildings, making it the first REIT in the country that offers community malls.

Vreit has some 256,404 square meters of aggregate GLA, with a 97-percent total occupancy rate and 5.09 years of weighted average lease expiry.

The initial Vreit’s assets cover SOMO, A Vista Mall in Bacoor; Starmall San Jose del Monte; Vista Mall General Trias; Vista Mall Tanza; Vista Mall Imus; Vista Mall Las Piñas; Vista Mall Las Piñas Annex; Vista Mall Pampanga; Vista Mall Antipolo; Vista Mall Talisay Cebu; Vistahub BGC; and Vistahub Molino.

Except Vistahub BGC, its property in Bonifacio Global City in Taguig, all other facilities are located within or near Vista Land developments, which makes Vreit a more viable investment opportunity as it enjoys a captive market through the matured residential communities, the company said.

“The Villar-owned community malls posted an increase in rental income in 2020 compared to other mall players despite the challenges brought about by the Covid-19 pandemic.” The company attributed the community malls’ positive performance to its strategic location and the tenant mix of the malls that were focused on providing mostly essential items during the pandemic.

The Vista Malls’ anchor tenants include Villar’s brands—AllHome and AllDay supermarkets, recreation areas, amusement centers, pharmacy, food and cinema.

Vreit has filed for a P9.18-billion initial public offering, which will offer up to P3.33 billion secondary common shares at a maximum price of up to P2.50 per offer share. It has an over-allotment option of up to 333.75-million secondary common shares.

The offer shares will be sold by Vista Land’s subsidiaries Masterpiece Asia Properties Inc., Manuela Corp., Communities Pampanga Inc., Crown Asia Properties Inc. and Vista Residences Inc.