SAFETY AND EXCHANGES COMMISSIONSEC FORM 17-C
CURRENT ARTICLE 17 REPORT
OF THE SECURITIES REGULATORY CODE
AND CBC RULE 17.2(c)
1. Report Date (Date of first reported event) June 6, 20222. SEC Identification Number CS2010107803. BIR tax identification number 007-813-849-0004. Exact name of the issuer as specified in its charter Citicore Energy REIT Corp. 5. Province, country or other jurisdiction of incorporation Philippines 6. Industry classification code (SEC use only) 7. Principal office address 11F, Rockwell Santolan Town Plaza, 276 Col. Bonny Serrano Avenue, San Juan City, Metro ManilaPostal code15008. Issuer’s phone number including area code +63 (02) 8826 56989. Former name or address, if changed since last report N / A10. Securities registered pursuant to Articles 8 and 12 of the SRC or Articles 4 and 8 of the RSA
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Title of each class |
Number of Common Shares Outstanding and Amount of Outstanding Debt |
| Ordinary actions | 6,545,454,004 |
11. Indicate the article numbers reported here Item #9
The Exchange does not warrant or assume any responsibility for the accuracy of the facts and statements contained in any corporate disclosures, including financial reports. All data contained herein is prepared and submitted by the Disclosing Party to the Exchange, and is being released for informational purposes only. Any questions about the data contained herein should be directed directly to the disclosing party’s corporate information officer.
Citicore Energy REIT Corp.CREIT
PSE REIT Disclosure Form-4 – Acquisition or Disposal of Assets
References: REIT Act 2009 IRR Rule 5 and
Section 6 of the amended PSE Listing Rules for REITs
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Purpose of disclosure |
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Acquisition of a parcel of land located in the Municipality of Surallah, Province of South Cotabato, with an area of 79,997 square meters (the “South Cotabato Property”). |
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Background/Description of Disclosure |
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On March 9, 2022, the CREIT Board of Directors (“Board”) approved the acquisition of the South Cotabato property and the subsequent execution of a lease agreement. The acquisition of the South Cotabato property is an asset purchase from Citicore Solar South Cotabato, Inc. (“Citicore South Cotabato”). On June 06, 2022, CREIT entered into a Deed of Absolute Sale (“DOAS”) with Citicore South Cotabato for the acquisition of the South Cotabato property for PhP753,801,981.00. |
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Board Approval Date |
March 9, 2022 |
Details of the acquisition or disposal
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Description of the assets concerned |
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The South Cotabato Property is a parcel of land located in the Municipality of Surallah, Province of South Cotabato, with an area of 79,997 square meters. The property is the site of Citicore South Cotabato’s 6.23 MWp solar power plant, which was successfully commissioned on December 9, 2015. |
Asset Details
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Type (land, building, etc.) |
Location |
Cut |
Acquired rights (ownership/lease, etc.) |
| Ground | Brgy. Centrala, Surallah, South Cotabato Province | 79,997 square meters | Full ownership |
Transaction terms and conditions
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Contract price, valuation and methods used to value assets |
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The contractual price of the transaction is PhP 753,801,981.00. The property has been valued using the income approach adopting the discounted cash flow method based on a weighted average cost of capital (WACC) using the fixed asset valuation model. The direct capitalization approach has also been used as a secondary method to cross-check the value of the property. Board approval for the acquisition was obtained following favorable approval by CREIT’s Real Party Transactions Review and Compliance Committee, which reviewed the third-party appraiser’s valuation report , the fairness opinion and the valuation report of the independent external party, as well as the recommendation of the Chief Financing Officer. |
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Payment terms |
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The total purchase price of PhP 753,801,981.00 was paid in cash upon execution of the DOAS. |
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Conditions precedent to closing the transaction, if any |
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The execution of the DOAS occurred after issuance by CREIT’s Compliance Officer that its execution is in compliance with applicable laws, rules and regulations. The transaction was consummated after full payment of the purchase price. |
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Any other salient term |
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Immediately after DOAS was executed, CREIT and Citicore South Cotabato signed a 25-year lease agreement. |
Identity of the person(s) from whom the assets were acquired or to whom they were sold
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Last name |
Nature of any material relationship with the issuer, its directors/officers or any of its affiliates |
| Citicore Solar South Cotabato, Inc. | Citicore South Cotabato is 100% owned by Sikat Solar Holdco, Inc. (“SSHI”). In turn, SSHI is 100% owned by Citicore Renewable Energy Corporation (“CREC”). CREC holds 47.63% of CREIT. |
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Discussion of the likely impact of the transaction on the business, finances and other aspects of the REIT |
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Together with the acquisition of the 253,880 square meter land located at Barangay Pasong Bangkal, San Ildefonso, Bulacan Province (the “Bulacan Property”), the acquisition of the South Cotabato Property will enable CREIT to generate long term rental income term period of 25 years, adding 20% to its total leased area. The two properties will contribute 21% of CREIT’s total rental income and bring the total operating capacity of all its tenants to 145 MWdp compared to CREIT’s pre-IPO capacity of 124 MWdp. |
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Other relevant information |
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This disclosure is amended to reflect the execution of DOAS between CREIT and Citicore South Cotabato. |
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Last name |
James Jumalon |
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Designation |
Deputy General Secretary |
Disclaimer
Citicore Energy REIT Corporation published this content on June 06, 2022 and is solely responsible for the information contained therein. Distributed by Audienceunedited and unmodified, on Jun 06, 2022 07:01:09 UTC.
Public now 2022
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Evolution of the income statement
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Sale  To buy |
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| Medium consensus | TO BUY |
| Number of analysts | 1 |
| Last closing price | PHP2.55 |
| Average target price | PHP 3.35 |
| Average Spread / Target | 31.4% |
