AREIT Inc. is acquiring nearly P21 billion worth of assets from its sponsor Ayala Land Inc. (ALI) via a property-for-share swap.
Under the deal, AREIT will acquire eight commercial properties from ALI and its subsidiaries—Accendo Commercial Corp. (Accendo), Cagayan de Oro Gateway Corp. (CDOGC) and Central Bloc Hotel Ventures, Inc.
These assets are worth P20.99 billion based on validation conducted by third-party fairness opinion. In exchange, ALI and its subsidiaries will subscribe to 505.890 million AREIT shares.
The proposed property-for-share swap is still subject for approval of AREIT shareholders at their annual meeting slated on April 24, 2025 and relevant regulatory bodies.
AREIT also reported that its board of directors approved the declaration of regular cash dividend of P0.58 per common share. This dividend is for the fourth quarter of 2024.
The record date is March 5, 2025, and the payment date is March 21, 2025.
ALI has been injecting new assets into AREIT regularly for the past few years. AREIT also acquired P28.6 billion worth of properties for ALI via a property-for-share swap last year.
These assets include Ayala Triangle Gardens Tower 2 office building, Greenbelt 3 & 5 mall, Holiday Inn Hotel & Suites Makati, and Seda Hotel in Ayala Center Cebu, and 276-hectare industrial land parcel located in Zambales.
AREIT’s assets under management ended at P117. 6 billion to date, which has expanded nearly four times since its stock market debut in 2020.
Its portfolio of assets includes a mix of office, malls, hotels, and industrial land to improve returns, and reduce sector risks across various economic cycles.
Its overall occupancy remained high at 96 percent, better than the industry average.
AREIT aims to achieve $3 billion AUM Over the next three years.
AREIT was included in the 30-company Philippine Stock Exchange Index early this month.