AREIT Inc., the real estate investment trust sponsored by Ayala Land Inc., has secured shareholder approval to add six commercial properties valued at P17.3 billion to its portfolio.
This infusion lifts AREIT’s total assets under management to P177 billion, up from P159 billion.
Ayala Land and its subsidiaries—Capitol Central Commercial Ventures Corp., Makati Cornerstone Leasing Corp., Bay City Commercial Ventures Corp., and North Triangle Hotel Ventures Inc.—will subscribe to 462.48 million newly issued AREIT common shares at P37.48 per share. This price is higher than AREIT’s 30-day average trading price as of the August 10 board approval date.
The deal now moves to regulatory review with the Securities and Exchange Commission.
Once completed, retail and hospitality will together make up 41 percent of AREIT’s portfolio—the largest combined share in the company’s history. Offices will account for 55 percent, retail 33 percent, hotels 8npercent, and land 4 percent.
The six properties are: Glorietta 4 (Makati), Ayala Malls Capitol Central (Bacolod), Ayala Malls Circuit (Makati), Ayala Malls Cloverleaf (Quezon City), New World Hotel (Makati), and Seda Vertis North (Quezon City).
“These infusions strengthen AREIT’s scale and diversify our portfolio across offices, retail and hospitality, while introducing lease structures that let us participate more directly in how these assets perform,” said AREIT president and CEO Alberto M. de Larrazabal.
“This gives AREIT new paths for steady growth while making our income base stronger and more consistent,” he added.
All properties were independently valued by Asian Appraisal. The pricing and terms also received a third-party fairness review from FTI Consulting.
Income from these assets will flow to AREIT, and shares will be issued to Ayala Land and its partners, once SEC approval is granted.
