III.

Case Study Directions:

1. Read the news article below.

2. Answer the following questions after:

1. What is a Real Estate Investment Trust (REIT)?

2. What is the stock symbol of the REIT of the company?

3. Who are the engaged universal banks/ investment houses for the IPO?

4. What instrument /security were issued?

5. How much is the estimated capital being raised?

6. What are included in the VREIT portfolio?

7. An investor has the following transactions and information related to VREIT?

a. Purchased 500,000 shares at IPO maximum price.

b. Purchased additional 1,215,675 shares at Phil Stock Exchange for P1.9 per share

c. The closing price of the VREIT today is below:

VREIT 1.75

VistaREIT, Inc 0.00 (0.00%)

d. The investor intends to keep the securities as short term investments. Compute for
the gain or loss on its investments as of today

Case

VistaREIT aims to offer 3.3 billion secondary common shares at a maximum price of P2.50. It plans to list
on the Philippine Stock Exchange on May 6.

MANILA, Philippines – Tycoon Manny Villar is jumping in on the real estate investment trust (REIT) party,
aiming to raise P9.2 billion to fund ongoing and future investments of Vista Land.

The Securities and Exchange Commission said Villar’s VistaREIT applied for the initial public offering (IPO)
of up to 3.3 billion secondary common shares at an offer price of up to P2.50 each, with an
overallotment option of up to 333.75 million secondary common shares.

VistaREIT’s portfolio includes 10 malls and two office buildings, with an aggregate gross leasable area of
256,403 square meters and a total appraised value of P35.95 billion.

“Our community malls (Vista Malls) are located in Las Piñas City, Bacoor City, General Trias City, Imus
City, Municipality of Tanza, Antipolo City, City of San Jose del Monte, San Fernando City, and Talisay City.
Our office buildings are located in Taguig City and Bacoor City,” VistaREIT said in its prospectus.
Its two office properties, Vista Hub Molino and Vista Hub BGC, are registered with the Philippine
Economic Zone Authority and are largely sustained by business process outsourcing tenants.

The company engaged BDO Capital, China Bank Capital, PNB Capital, RCBC Capital, and SB Capital as
joint lead underwriters and bookrunners for the transaction, with Abacus Capital as participating
underwriter.

VistaREIT aims to offer the shares from April 22 to 28 and list on the main board of the Philippine Stock
Exchange on May 6 under the stock symbol VREIT. – Rappler.com

Reference : https://www.rappler.com/business/manny-villar-vista-real-estate-investment-trustfiles-
initial-public-offering/