Ayala Land Inc. has approved a P20.99 billion property-for-share swap with its real estate investment trust, Areit Inc. The deal will see Ayala Land’s units—Accendo Commercial Corp., Cagayan de Oro Gateway Corp., and Central Bloc Hotel Ventures Inc.—subscribe to 505.89 million primary common shares of Areit in exchange for eight commercial properties.
Shareholder approval for the swap will be sought at Areit’s annual meeting on 24 April this year alongside the approval of related amendments to Ayala Land’s articles of incorporation.
In a bid to raise capital, Ayala Land will secure up to P75 billion in debt, partially refinancing maturing loans and funding capital expenditures. The company also plans to amend its authorized capital stock and approve a new employee performance shares plan to enhance talent retention and alignment with shareholder interests.
