In 2021, the Bureau of Customs (BOC) collected PHP18.9 billion in customs from rice imports.…
AREIT and ALI agreed to a swap for assets valued at P22.5 billion
The third property-for-share exchange between the Philippine Real Estate Investment Trust (AREIT) and Ayala Land Inc. (ALI) would involve landmark offices and malls valued at PHP22.479 billion in exchange for 607,559,380 primary common shares of the AREIT.
The One Ayala Avenue East and West BPO Towers at the intersection of Ayala Avenue and Edsa are the most recent assets covered by the swap contract with the sponsor, according to a declaration made by AREIT, Inc. in the local exchange on Wednesday.
Additional properties include the business process outsourcing (BPO) buildings in Ayala Center, the Glorietta 1 and 2 mall wing, and the MarQuee mall in Angeles City, Pampanga.
With a combined gross leasable area (GLA) of 190 000 square meters (sqm), a 99 percent overall occupancy rate, and a weighted average lease expiry (WALE) of 14.5 years, the company stated these assets had a number of favorable characteristics.
Although needed shareholder approval at AREIT’s annual meeting on April 26, 2023, it was stated that “ALI and AREIT are intending to conclude the deal within the year” AREIT’s board of directors on March 7, 2023.
Since its initial public offering (IPO) in July 2020, the company has outperformed its growth projections and generated a total shareholder return of 52%.
The company’s assets under management (AUM) currently stand at 673,000 square meters, or PHP64 billion, up from 153,000 square meters, or PHP30 billion, in 2020.
“This fresh infusion in 2023 would virtually triple the Company’s AUM to PHP87 billion and expand its GLA more than five times to 863 thousand sqm from the IPO, making AREIT one of the largest and most diverse commercial REITs in the Philippines,” the company stated.
“The recovery of commercial firms provides a chance for AREIT to significantly diversify its properties with more retail buildings,” said Carol Mills, president, and chief executive officer of AREIT.
She claimed that the addition of the Glorietta 1 and 2 malls and BPO buildings, as well as the brand-new One Ayala Avenue BPO towers, was proof that AREIT was Ayala Land’s flagship REIT.
As in the previous two years, she continued, “We are dedicated to continuously growing and diversifying our assets to create shareholder value for AREIT while ALI maximizes capital recycling and reinvests further in Filipino real estate.***
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