ALI wastes no time reinvesting AREIT share sale proceeds

Property giant Ayala Land Inc. (ALI) has reinvested 65 percent of the proceeds from last April’s multibillion-peso sale of shares in real estate investment trust (REIT) arm, AREIT Inc.

Most of the proceeds were infused into Ayala Land’s Quezon City venture with taipan Lucio Tan’s Eton Properties Philippines apart from loans and disbursements to support other projects and the acquisition of land.

Last April, Ayala Land sold P3.47 billion worth of AREIT shares in relation to a separate property-for-share swap transaction. The builder generated P3.44 billion in net proceeds.

In its disbursement report covering the second quarter of 2022, Ayala Land said it reinvested P2.27 billion of the amount from May 2 to June 30 this year. The balance at the end of the period stood at P1.17 billion.

Ayala Land said P1.25 billion was deployed via a capital infusion in the 35-hectare Parklinks project, which is being developed by the 50-50 venture ALI Eton Property Development Corp.

A former industrial estate along C-5 road spanning Pasig and Quezon City, Parklinks is envisioned to be Metro Manila’s newest and greenest central business district.

It also issued intercompany loans worth P745 million to Laguna Technopark Inc. for the acquisition of land. The remaining amounts of P108.13 million, P99.27 million and P66.19 million were reinvested in a Cavite project, One Vertis Plaza and the Andacillo project in Laguna.

Part of conglomerate Ayala Corp., Ayala Land entered the year with more bullish prospects in mind. It upsized its capital spending commitment by nearly 40 percent to P88 billion versus the previous year’s P64 billion.

About 49 percent of the spending would be allotted for residential projects. Ayala Land will spend the remainder on estate development and land acquisition, with a smaller share going to malls, hotels, resorts and offices.

It was also planning to roll out about P100 billion worth of residential projects this year.