ALI raises P2.7B from AREIT share sale

MANILA, Philippines – Property giant Ayala Land Inc. (ALI) has raised P2.67 billion from the sale of a portion of its stake in AREIT Inc., as it continues to recycle capital for future investments.

In a disclosure on Tuesday, ALI said it sold 75 million common shares of AREIT, its sponsored real estate investment trust, at P35.60 per share through a block sale arranged by UBS AG Singapore Branch and BPI Capital Corp.

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The transaction generated gross proceeds of about P2.67 billion, excluding fees and taxes.

The proceeds are scheduled to be settled on June 18, subject to the terms and conditions of the placement agreement.

“ALI will submit the required Reinvestment Plan detailing the use of proceeds obtained from the block sale in due course,” the company said.

The shares were offered to investors outside the United States under Regulation S of the US Securities Act and to qualified institutional buyers in the US under Rule 144A.

The shares were likewise sold in the Philippines through transactions exempt from registration requirements under the Securities Regulation Code.

AREIT, the country’s first listed real estate investment trust, remains one of ALI’s key capital recycling vehicles.

Through AREIT, ALI has been able to monetize completed income-generating assets while retaining exposure to recurring property income.

The latest block sale comes as ALI continues to manage its capital position amid a challenging property market.

Earlier, company officials said the group remains focused on maintaining financial flexibility while pursuing opportunities across its residential, commercial and industrial property segments.

The disclosure did not indicate the resulting ownership level of ALI in AREIT following the transaction. INQ