How Citicore Energy REIT plans to expand in 3 years

Properties in underdeveloped areas are targeted to drive long-term land value.

Citicore Energy REIT Corp. (CREIT) has unveiled its three-year investment plan as it aims to become the largest renewable energy landlord in the Philippines.

According to a bourse filing, CREIT said its principal investment strategy is to invest in income-generating renewable energy real estate properties.

“A core tenet of the company’s investment policy is to invest in properties that meet a select set of criteria designed to provide a Competitive Investment Return to investors,” the company said.

To meet the investment criteria, a potential new renewable energy property should primarily, but not exclusively, be a site suitable for solar power plants, but may include other renewable energy properties available in the market. It should also be located in underdeveloped areas where the company has completed and validated the availability of resources and the potential of such areas for future township developments to drive long-term appreciating land value.

The criteria “achieved successful plant testing and commissioning, with stable offtake contracts for 100% of the power plant’s expected generation output” was also removed to expand and accelerate possible investments.

“With the revised criteria, the company will be able to realise lease income earlier as renewable energy properties can now be leased out to solar plant developers even during construction stage, thereby providing earlier income stream to the company’s shareholders,” CREIT said.

“Upon successful plant testing, commissioning and securing of offtake contracts, CREIT still has an option to purchase the power plant and lease it out to the plant operator,” the company added.