CITICORE ENERGY REIT Corp. (CREIT), the country’s first renewable energy real estate investment trust (REIT), is looking to pursue a fundraising initiative next year to finance new property acquisitions, its president said.
“Any new land acquisition would involve new fundraising which we are looking at around next year. So we will first complete the acquisition of the batch one of the solar assets before the end of the year before any plans of acquiring new properties,” CREC President and Chief Executive Officer Oliver Y. Tan said during the company’s annual stockholders’ meeting on Monday.
CREIT is acquiring solar power assets from its sponsor, Citicore Renewable Energy Corp. (CREC), which are targeted to be completed “on or before yearend.”
“We are aiming to acquire the first batch of approximately 250 megawatts worth of new solar on or before yearend,” Mr. Tan said.
“We’re waiting for the successful commissioning of these plants and also securing necessary regulatory approvals.”
In 2023, CREIT acquired seven assets which served as the sites of solar farms, which are part of the sponsor’s first gigawatt (GW) in its 5 GW in five years goal.
“The first batch of these solar assets will be operational third quarter to fourth quarter, where the sponsor is targeting to energize approximately 1 GW worth of new solar before the end of the year,” Mr. Tan said.
He said that a new fundraising activity is needed as the company already utilized the amounts raised from its issuance of green bonds in 2023.
CREIT issued P4.5 billion in ASEAN Green Bond offering, which was oversubscribed and was used to acquire green properties.
CREIT Chairman Edgar B. Saavedra said that the company is expecting stable growth as land assets for renewable energy pose an attractive opportunity for investors.
“We expect investors to continue setting their sights on REITs in 2025, seeing stable returns from these investments,” Mr. Saavedra said. “But with our unique portfolio grounded in supporting renewable expansion in the Philippines, CREIT offers green investors stability in generating returns and a positive impact on sustainable development.”
CREIT is the Philippines’ first REIT with a focus on renewable energy. It specializes in owning infrastructure projects, including income-generating renewable energy properties across the Philippines. — Sheldeen Joy Talavera
