Areit Inc., the real estate investment trust sponsored by property developer Ayala Land Inc. (ALI), on Wednesday obtained regulatory approval of its share swap proposal valued at P11.25 billion.
Ayala Land will subscribe to 252.13 million Areit shares in exchange for identified Cebu commercial properties.
In anticipation of the approval, Areit declared its third-quarter 2022 dividends the previous October at P0.49 percent share to stockholders of record as of October 25, ahead of its regular quarterly dividend declaration.
“The new assets are expected to contribute to earnings of the company in the succeeding periods,” Areit said.
In line with this, the parties have executed an amendment to Section 4.3 of the deed of exchange effecting the recognition of income from the new assets by Areit for the fourth quarter of 2022.
The buildings that will be infused to Areit have occupancy of between 91 percent to 99 percent and all located at the Cebu IT Park.
These are eBloc 1, a 20,842 square meters of gross leasable space completed in 2009; eBloc 2, a 27,727 square meter property completed in 2011; eBloc 3, a 15,233 square meters completed in 2014; eBloc 4, 16,167 square meters completed in 2015; ACC Tower, 27,517 square meters completed in 2016; and Tech Tower 1, which has 16,813 square meters completed in 2018.
Areit said it is seeking Bureau of Internal Revenue (BIR) certification authorizing registration for the new assets and listing the shares in favor of Ayala Land within the first quarter this year.
Upon approval, Areit’s outstanding common shares increase to 1.76 billion common shares from 1.5 billion, of which Ayala Land will own 66 percentl.
With the completion of the transaction, Areit’s gross leasable area expands to 673,000 square meters.
At the closing price of P35.70 on Tuesday, the company’s total market capitalization already aggregated P63 billion from P27B during its initial public offering in 2020.
