AREIT Inc., the real estate investment trust company owned by Ayala Land Inc., said it is acquiring a 9.8-hectare property in Laguna province for P1.1 billion.
AREIT said in a disclosure to the stock exchange the land acquisition would directly contribute to the company’s income starting this month and add to the earnings generated by buildings under its portfolio.
This will also increase the distributable income to shareholders, demonstrate AREIT’s ability to deliver stable and regular dividends, and strengthen potential for capital appreciation, it said.
AREIT is acquiring the land from TLI, a subsidiary of Ayala Corp. The property is located inside Laguna Technopark and consists of four parcels being leased by Integrated Micro-Electronics Inc. for its manufacturing operations.
The acquisition will be partially funded with debt.
AREIT said along with the acquisition of The 30th in Pasig, its portfolio will reach 344,000 square meters of leasable space, double the current size of 171,000 square meters just five months from its initial public offering.
This also brings up AREIT’s total property value to P37 billion.
“Aside from being value-accretive to investors, AREIT’s assets promote job creation for Filipinos. AREIT’s office buildings are home to top local and global companies that employ over 50,000 Filipino workers including this newly acquired land where over 5,000 jobs are generated,” AREIT president and chief executive Carol Torres-Mills said.
AREIT earlier said it would continue to acquire income-producing commercial properties to enhance returns for investors and increase opportunities for future income and capital growth.
Among the criteria for acquisition are properties with stable income and cash-flow derived from solid tenant mix of top multinational and local business process outsourcing and traditional headquarter office locators.
AREIT is the country’s first REIT firm to be listed at the Philippine Stock Exchange. Its portfolio includes four commercial properties, including Solaris One, Ayala North Exchange, McKinley Exchange and Teleperfomance Cebu.
It said that to fund the planned acquisitions, the company would file for P15-billion bond-shelf registration program. It also established P12 billion in short-term credit facilities.
Share price of AREIT fell 0.2 percent on Wednesday to P28.95.