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Acquisition of a parcel of land located in the Municipality of Surallah, Province of South Cotabato, with an area of 79,997 square meters (the "South Cotabato Property").

On March 9, 2022, CREIT's Board of Directors ("BOD") approved the acquisition of the South Cotabato Property and the subsequent execution of a lease agreement. The acquisition of the South Cotabato Property is an asset purchase from Citicore Solar South Cotabato, Inc. ("Citicore South Cotabato"). On June 06, 2022, CREIT entered into a Deed of Absolute Sale ("DOAS") with Citicore South Cotabato for the acquisition of the South Cotabato Property for PhP753,801,981.00.

The South Cotabato Property is a parcel of land located in the Municipality of Surallah, Province of South Cotabato, with an area of 79,997 square meters. The property is the site of Citicore South Cotabato's 6.23MWp Solar Power Plant, which was successfully commissioned on December 9, 2015.

The contract price of the transaction is PhP753,801,981.00. 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 Direct Capitalization Approach was also used as a secondary method to cross-check the value of the property. The BOD's approval for the acquisition was reached after a favorable endorsement from CREIT's Real Party Transaction Review and Compliance Committee, which considered the valuation report of the Third Party Appraiser, the fairness opinion and valuation report of the Independent External Party, and the recommendation of the Fund Manager.

The total purchase price of PhP753,801,981.00 was paid in cash upon the execution of the DOAS.

The execution of the DOAS took place after the issuance by CREIT's Compliance Officer that its execution is compliant with existing laws, rules, and regulations. The transaction was consummated upon full payment of the purchase price.

Immediately after the execution of the DOAS, CREIT and Citicore South Cotabato executed a lease agreement for a term of 25 years.

Together with the acquisition of the 253,880 square meters of land located in Barangay Pasong Bangkal, San Ildefonso, Province of Bulacan (the "Bulacan Property"), the acquisition of the South Cotabato Property will allow CREIT to generate leasing income over a long-term period of 25 years, adding 20% to its total leased area. The two properties will contribute 21% to CREIT's total lease revenue and bring total operating capacity of all its tenants to 145MWdc from CREIT's pre-Initial Public Offering capacity of 124MWdc.

This disclosure is being amended to reflect the execution of the DOAS between CREIT and Citicore South Cotabato.

Citicore Energy REIT Corporation published this content on 06 June 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 06 June 2022 07:01:09 UTC.