Citicore Energy REIT Corp. Raises PHP 5 Billion from the Sale of Shares to SM Investments Corp.

Citicore Renewable Energy Corporation (CREC), along with its wholly owned subsidiary Citicore Solar Tarlac 1, Inc., sold a total of 1,884,374,000 common shares, or 28.79% interest, in the real estate investment trust Citicore Energy REIT Corporation (CREIT) to Philippine conglomerate SM Investments Corporation (SMIC) for P2.6534 per share, raising approximately P5.0 billion. CREIT is the largest renewable energy REIT landlord in the country, with over 7.16 million square meters of gross leasable area.

“We believe that the SM group’s entry and investment into CREIT and the partnership with CREC unlocks potential synergies given the energy requirements of the SM group,” said CREC President and CEO Oliver Tan.

“As part of our group-wide sustainability agenda to prioritize environmental responsibility and support a low-carbon economy, we are investing in CREIT to increase SM’s footprint in the renewable energy sector,” said SMIC President Frederic DyBuncio.
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CREC will remain the single largest stakeholder in CREIT, with 32.88% effective ownership post-transaction. Proceeds from the sale will be used to further develop CREC's 1,583 MW ready-to-build and under-construction solar power projects across eight site locations across the country by December 31, 2023, in accordance with the company's goal of contributing approximately 1.0 GW of solar energy capacity per year as part of its 5-year pipeline rollout roadmap.
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CREC obtained a Notice of Clearance (NOA) from the Philippine Stock Exchange, Inc. (PSE) on January 29, 2024, approving its application for listing via initial public offering (IPO), while the Securities and Exchange Commission granted its pre-effective clearance on January 17, 2024. CREC plans to list its shares on the PSE in or around the second quarter of 2024.
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BDO Capital & Investment Corporation served as the sale's transaction adviser.

CREC is a leading pure-play renewable energy company committed to the development and operation of solar, hydro and wind projects in the Philippines. CREC, directly and through its subsidiaries and joint venture, manages a diversified portfolio of renewable energy generation projects, engages in power project development operations, and participates in retail electricity supply. CREC is also the sponsor of the Philippine’s first renewable energy REIT, Citicore Energy REIT (CREIT).

CREIT, the Philippines’ first renewable energy real estate investment trust and the largest renewable energy REIT landlord as of 31 December 2023 (based on publicly available informacon reported to the PSE), is powered by its sponsor, Ciccore Renewable Energy Corporacon. CREC aims to lead the renewable energy revolucon by empowering Filipino communices through posicve energy. CREC is commided to powering a First-World Philippines with Pure Renewable Energy.

​SM Investments Corporation is one of the leading Philippine companies that is invested in market-leading businesses in retail, banking, and property. It also invests in ventures that capture high growth opportunities in the emerging Philippine economy. SM’s retail operations are the country’s largest and most diversified, consisting of grocery stores, department stores and specialty retail stores. SM’s property arm, SM Prime Holdings, Inc., is the largest integrated property developer in the Philippines with interests in malls, residences, offices, hotels, and convention centers as well as tourism-related property developments. SM’s interests in banking are in BDO Unibank, Inc., the country’s largest bank, and China Banking Corporation, the fourth largest private domestic bank.