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By Beatriz Marie D. Cruz, Reporter
AYALA LAND, INC. has successfully raised a whopping P4.19 billion by selling 100 million shares of its real estate investment trust, AREIT, Inc. This move is part of its plans to boost the trust with new mall properties!
The shares were priced at P41.90 each and were sold through a placement managed by UBS AG Singapore Branch, BPI Capital Corp., and Maybank Securities Pte. Ltd., according to a stock exchange report released by the Philippine developer on Wednesday.
These shares went to buyers both in the Philippines and overseas. Since the transaction didn’t require registration under the Securities Regulation Code, it won’t be registered with the Securities and Exchange Commission. The funds from the sale are set to be finalized by November 28.
“This block sale boosts AREIT’s public float ahead of the exciting addition of Ayala Center Cebu and Ayala Malls Feliz,” shared Juan Paolo E. Colet, managing director at China Bank Capital Corp., in a Viber message. “It also gives Ayala Land the opportunity to reinvest in new projects for continued growth.”
AREIT is aiming to expand its managed assets by P19.5 billion through a property-for-share swap with Ayala Land and its fully-owned unit, Summerhill Commercial Ventures Corp.
As part of this deal, they will contribute Ayala Center Cebu located in Cebu Business Park and Ayala Malls Feliz in Pasig, elevating AREIT’s managed assets to P158 billion.
These two properties offer a combined gross leasable area of 375,000 square meters, raising AREIT’s total area to 4.7 million square meters. This swap will also allow Ayala Land and Summerhill to subscribe to 441.13 million primary common shares of AREIT.
At the end of trading at the Philippine Stock Exchange, shares of Ayala Land dipped by 0.94% to P21 each, while AREIT saw a decrease of 3.44%, closing at P42.15. This shows the volatility in the market amid the ongoing block sale.
In summary, this transaction not only helps AREIT attract more investors ahead of its asset infusion, but also provides Ayala Land with greater capital flexibility to fuel its array of commercial projects.
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