AREIT adds Cebu building to its roster of assets
Following the acquisition by AREIT of a BPO building in Cebu IT Park last Sept. 16, Ayala Land subsidiary, ALO Prime Realty Corp. (APRC) has recently transferred the long-term lease rights of the building’s lessee Teleperformance to AREIT Inc.
This recent acquisition of the Cebu building is in line with AREIT’s plans to grow its real estate investment trust (REIT) portfolio. Its current roster of office buildings includes three Grade A properties in Makati namely Ayala North Exchange, Solaris One and McKinley Exchange. The addition of the Cebu property will increase AREIT’s total gross leasable area from nearly 153 thousand square meters to 172 thousand square meters.
The Cebu building has a gross leasable area of 18,092 square meters and is mostly being leased by Teleperformance, one of the largest BPO companies in the country. The building was completed in 2013 and is a Grade-A, PEZA-accredited, and LEED Gold Certified Business Process Outsourcing (BPO) development. Teleperformance has been one of the long-time valued tenants of Ayala Land with leases in four other Ayala buildings in Makati, Quezon City, and Cagayan de Oro.
“Building up our REIT assets through the property in Cebu will increase AREIT’s dividend yield and is consistent with our growth strategy of acquiring prime real estate assets with stable occupancy. The acquisition of the building is a testament of our commitment to grow our portfolio of office properties leased to leading companies in the BPO sector,” said Carol Mills, AREIT President.
As the first REIT company in the country, AREIT offers a new asset class that enables investors to earn from dividends coming from the rental income of high-performing commercial assets. The steady income generation from AREIT office buildings will provide shareholders with increasing dividend distributions, as investors are entitled to receive at least 90% of the company’s distributable income every year. The company started paying quarterly dividends earlier this September.
With AREIT, Ayala Land also hopes to provide investors the opportunity to broaden their range of investments. This type of product is an alternative investment vehicle for those who want to balance regular dividend income and ride on the growth of the real estate industry.
To learn more about AREIT, watch this video: https://youtu.be/DEpCqHGLI_A or visit our website at https://www.areit.com.ph/
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