Ayala’s AREIT moves to take in P 22.5B worth of malls, offices

MANILA  -The Ayala Group’s real estate investment trust (REIT) arm AREIT Inc. is raising its capital base as it moves closer to completing its biggest-ever acquisition of malls and offices from controlling shareholder, Ayala Land Inc.

In a stock exchange filing on Monday, AREIT said it submitted an application to the Securities and Exchange Commission to increase its authorized capital by over a third to P40.5 billion.

AREIT plans to issue shares to Ayala Land and affiliates in exchange for P22.5 billion worth of the coveted malls and offices within the Ayala Center complex in Makati City and other areas.

The company announced on Monday the execution of a deed of exchange with Ayala Land, Ayalaland Malls, Inc. and Northbeacon Commercial Corp. ahead of the property-for-share swap.

The issuance involves 607.6 million shares of AREIT at P37 per share. AREIT shares rose 1.64 percent to P34.05 each on Monday.

Once regulatory approvals are secured, AREIT said it would to list the additional shares on the Philippine Stock Exchange within the first quarter of 2024.

REITs are holding companies for various types of leasing assets that are required to pay dividends to shareholders.

The group’s “crown jewel” assets to be infused into AREIT are the Glorietta 1 and 2 in its Ayala Center complex in Makati City.

Ayala Land will also infuse BPO buildings in Ayala Center; the One Ayala Avenue East and West BPO Towers at the corner of Ayala Avenue, Makati and Edsa; and the MarQuee mall in Angeles, Pampanga.

The assets have a combined gross leasable area of 190,000 square meters. INQ