Lucio Co's Cosco Capital Prepares for Major REIT Listing

MANILA, Philippines — Lucio Co, the renowned retail magnate, intends to launch a real estate investment trust (REIT) listing through Cosco Capital, his investment holding vehicle. According to Ramon Monzon, the president of the Philippine Stock Exchange (PSE), this IPO could be the largest offering at the exchange in the current year.

Monzon disclosed that Cosco's REIT listing would encompass its industrial real estate division, which is estimated to be valued between P15 billion and P30 billion. This move by Cosco could significantly contribute to the PSE's goal of raising capital amounting to P160 billion throughout the year.

In reference to the forthcoming application filing, Monzon stated, "They (Cosco) have informed me that they will be filing their application this month or next month."

The potential realization of Lucio Co's REIT listing, set to occur this year, would enable the PSE to surpass last year's achievement of raising P110 billion and meet its target of P140 billion to P160 billion in capital raising.

Cosco is widely recognized in the retail industry, operating well-known establishments such as Puregold Price Club Inc. and S&R Membership Shopping. However, the company's real estate endeavors have also been expanding, encompassing various commercial buildings, co-developed properties, and community malls across multiple locations.

Through its website, Cosco highlights the presence of seven publicly listed real estate firms, including Ellimac Prime Holdings Inc., which serves as the flagship company within Cosco's real estate group.

The company's extensive property portfolio comprises 47 strategically situated assets in key areas of Metro Manila, Bulacan, Nueva Ecija, Quezon, and Cagayan in Central and Northern Luzon. Of these properties, 25 are operational as commercial retail buildings, eight are subject to long-term land lease arrangements, while 14 others are in different stages of planning and development.

Many of Ellimac Prime's commercial retail buildings are leased to prominent retail tenants, catering to the needs of Puregold's customers.

One notable example is The Fairview Terraces, a commercial shopping complex jointly developed by Cosco and Ayala Land. Located in a prime commercial area of Quezon City, this establishment offers a wide range of dining and shopping experiences for families and professionals, housing an extensive mix of foreign and local brands.

Pure Petroleum Corp. (PPC), another entity within Cosco's real estate group, initiated the operations of a fuel terminal facility in the Subic Bay Freeport Zone in December 2012. The terminal includes jetty facilities for bulk loading and unloading, mooring buoys, water storage tanks for fire protection, maintenance areas, and truck loading racks. Implementing industry best practices and relevant policies, PPC ensures the safe and efficient operation of its facilities.

Cosco has allocated P12.2 billion for capital expenditures this year to sustain its growth and operations, a significant increase compared to the P6.1 billion allocated in the previous year.

In the first quarter of the year, the listed holding company achieved a consolidated net income of P3.1 billion, representing a 14.4 percent year-on-year increase.

Source: https://www.philstar.com/business/2023/07/17/2281499/lucio-cos-reit-readies-years-biggest-ipo

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