Big-Ticket REIT IPOs Unlikely to Push Through This Year

Real estate investment trust (REIT) listings from Lucio Co's Cosco Capital and the Sy family's SM Prime Holdings are not likely to take place this year.

- Richmond Mercurio

The STAR learned from a source that Cosco's REIT listing, which was earlier seen to be worth from P15 billion to P30 billion, has been "shelved already."

Cosco's planned REIT offering was made public in 2023, with Philippine Stock Exchange president Ramon Monzon saying they had been informed by the listed holding company of its intent to file an application.

Cosco previously said it was indeed studying a possible REIT offering.

Another source, meanwhile, told The STAR that SM Prime's REIT listing is also not likely to happen this year.

The company decided to postpone the initial public offering (IPO) last year given the interest rate environment and market volatility.

SM Prime president Jeffrey Lim said last year that the company would revisit its planned $1 billion REIT listing this year, but noted that pushing through with the offering would also depend on the company's need to raise funds.

"REIT IPOs are on hold due to a combination of factors, particularly high market interest rates and generally weak equity market conditions," China Bank Capital Corp. managing director Juan Paolo Colet told The STAR.

"This backdrop makes it challenging for potential REIT sponsors to get the best valuation for their offer shares," he said.