MANILA—Property developer Ayala Land Inc. (ALI) is set to infuse two of its malls, valued at P19.5 billion, into its real estate investment trust (REIT) company AREIT Inc. through a property-for-share swap deal, the firms announced in separate disclosures to the stock exchange Wednesday.
The transaction, representing the third asset infusion by ALI to AREIT, involves swapping Ayala Center Cebu in Cebu City and Ayala Malls Feliz in Pasig City for 444.131 million primary common shares in AREIT.
This will increase AREIT’s total assets under management (AUM) to P158 billion. The two malls have a combined gross leasable area (GLA) of 375,000 square meters, raising AREIT’s total building GLA to 1.8 million square meters and industrial land GLA to 2.9 million square meters.
Post-transaction, AREIT’s portfolio mix will shift to 40-percent office space, 54-percent retail and 6-percent hotels. The company expects the addition to strengthen its retail exposure and expand its footprint in Metro Manila and Cebu.
“This latest infusion strengthens AREIT’s portfolio with two dynamic retail destinations, enhancing both our geographic reach and asset mix,” said AREIT president and chief executive Alberto de Larrazabal.
“As we continue to build scale with quality, our shareholders will benefit from a larger and more diversified portfolio,” he said.
The property swap is contingent on approval by AREIT shareholders at a special stockholders’ meeting scheduled for Dec. 11, 2025 and by relevant regulatory bodies.
ALI and AREIT aim to finalize the transaction by the second half of 2026. AREIT said the latest infusion is expected to be yield-accretive and support dividend growth.
Once approved, ALI’s total infusions for the year will reach P40.5 billion.
Earlier this year, AREIT also announced plans to acquire P21 billion worth of assets from ALI, a deal which received approval from the Securities and Exchange Commission last month.
