Bilyonaryo - Business

CREIT seals purchase of South Cotabato property to boost income

Citicore Energy REIT, an affiliate of Megawide Corp., has sealed the acquisition of a 79,997 square meter property in South Cotabao for P753.8 million.
The property, located in the municipality of Surallah, province of South Cotabato, was acquired from Citicore Solar South Cotabato. It is the site of a 6.23 megawatt peak solar power plant which was successfully commissioned on December 9, 2015.
CREIT said the property was valued using income approach, adopting the discounted cash flow method based on a weighted average cost of capital (WACC) using the capital asset pricing model.
The transaction was consummated upon full payment of the purchase price.
Immediately after the execution of the deed of absolute sale (DOAS), CREIT and Citicore South Cotabato executed a lease agreement for a term of 25 years.
Together with the acquisition of 253,880 square meters of land in Bulacan, CREIT will be able to generate leasing income over a long-term period of 25 years, adding 20 percent to its total leased area.
The two properties will bring total operating capacity of all its tenants to 145MWdc from CREIT’s pre-initial public offering capacity of 124MWdc.