It plans to use the proceeds to acquire more land and ultimately increase CREIT’s landholdings to 7 million sqm from the current 1.98 million sqm. These properties will then earn rental income from the solar plants that will be built on it.

We don’t yet have information on the location of these future acquisitions and whether it will be freehold or leasehold land or a mix of both. The previous update from its sponsor, CREC (Citicore Renewable Energy Corporation), did indicate planned greenfield projects are in Batangas, Zambales and Pangasinan. What I’m most excited about is the future dividend increase that will result from these upcoming assets.

CREIT is not wasting any time in executing its growth plans. It was only last year that they had an IPO and now they’ve issued bonds. Sponsor, CREC, will also be raising capital in Q2 or Q3 later this year via an IPO. This will be used to build $4 billion of renewable energy projects, the bulk of which will be solar plants.

It’s good for CREIT investors that CREC will become a publicly listed company. As the REIT sponsor, majority shareholder and tenant, CREC’s fortunes are ultimately tied to CREIT. When listed, they will need to comply with disclosure and reporting requirements and that will be helpful for CREIT investors as well.

Here’s a snapshot for CREIT’s first year anniversary: