FILE PHOTO
MANILA, Philippines — Zobel family-led property developer Ayala Land Inc. (ALI) and its subsidiary have sold P3.18 billion worth of their shares in the Ayala Group’s real estate investment trust arm (AREIT), a move that is related to an asset-for-share deal with the latter.
ALI on Tuesday said the block sale, which it executed with subsidiary Westview Commercial Ventures Corp., involved 98 million AREIT common shares at P32.45 each.
AREIT’s shares closed at P33 each on Tuesday, down by 1.15 percent.
“The transaction is twice oversubscribed at the clearing price and was anchored by high-quality long-only institutional investors,” ALI said in a stock exchange filing.
BPI Capital Corp. and UBS AG Singapore Branch arranged the sale.
According to ALI, proceeds from the block sale will be settled on Thursday, May 23, subject to the terms and conditions of the placement agreement.
Reinvestment plan
Further, ALI and its subsidiary will submit the required reinvestment plan, which spells out the use of proceeds, “in due course.”
Last March, AREIT announced that it planned to acquire P28.6 billion worth of assets from ALI and its subsidiaries via asset-for-share transactions.
In line with this, AREIT will issue 841.26 million common shares at P34 each in exchange for Ayala Triangle Gardens Tower Two, Greenbelt 3 and 5 and Holiday Inn in Makati City; Seda Ayala Center in Cebu; and a 276-hectare land in Zambales province currently under ACEN Corp., the listed energy platform of the Ayala Group.
In the first quarter, AREIT’s new building acquisitions helped lift profits by 45 percent to P1.47 billion.Revenues also surged by 43 percent to P2.11 billion.