AREIT gets P21-B boost from parent Ayala Land, sister firms
AREIT Inc. will get a P20.99-billion infusion from sponsor Ayala Land Inc. (ALI) and two of the latter’s subsidiaries through a property-for-share swap deal.
This would enable the Ayala group’s real estate investment trust (REIT) to expand and diversify its portfolio.
In a disclosure on Friday, the country’s first publicly listed REIT said the Securities and Exchange Commission had given its go signal for the deal with ALI, Accendo Commercial Corp. and Cagayan de Oro Gateway Corp. (CDOGC).
The transaction involves eight commercial buildings. These are Central Bloc Office 1 and 2, AyalaMalls Central Bloc and Seda Central Bloc in Cebu City; AyalaMalls Abreeza and Abreeza Corporate Center in Davao City; and AyalaMalls Centrio and Centrio Corporate Center in Cagayan de Oro City.
In exchange for the properties, the three companies will get a total of 505.89 million AREIT primary common shares.
AREIT shareholders approved the transaction last April 24. The firm will recognize income from new assets starting July 1.
According to AREIT, it will apply for the listing of the shares in favor of ALI, Accendo and CDOGC within this year.
Once the deal is consummated, AREIT’s gross leasable area will expand to 4.3 million square meters. Its assets under management will reach P138 billion.
Gains from new assets
In the first semester, AREIT benefited from gains from new assets. This resulted in a 45-percent profit surge during the period to P4.3 billion.
Its properties had a 99-percent overall occupancy in the January to June period.
It particularly enjoyed fresh contributions from Ayala Triangle Gardens Tower 2 office building, Greenbelt 3 and 5 mall, Holiday Inn & Suites Makati, Seda Ayala Center Cebu and industrial land in Zambales province.
AREIT likewise declared cash dividends of P0.59 per outstanding common share. This brought the total dividends in the first semester to P1.17 per share, up 4 percent.
