AREIT Inc., the pioneer real estate investment trust company in the Philippines, said Monday it obtained the approval of the Securities and Exchange Commission on its planned property-for-share swap with sponsor Ayala Land Inc. and subsidiaries.
AREIT will issue 483.254 million common shares to Ayala Land subsidiaries Westview Commercial Ventures Corp. and Glensworth Development Inc. in exchange for key commercial assets to be infused into the company worth P15.46 billion.
The properties involved in the property-for-share swap include Vertis North Commercial Development, Evotech Buildings 1 and 2, Bacolod Capitol Corporate Center, Ayala Northpoint Technohub and office condominium units at BPI-Philam Life Buildings in Makati and Alabang.
Following the approval, the parties executed an amendment to Section 4.2 of the deed of exchange so that the recognition of income from the new assets would accrue to AREIT beginning Oct. 1, 2021, instead of Nov. 1, 2021.
The swap will enable shareholders to partake in the contribution of the new assets starting in the fourth quarter of the year.
In anticipation of the approval, AREIT declared its third-quarter dividends earlier than the regular schedule to provide shareholders with an equitable share in the company’s performance for the whole quarter, prior to the increase in the common shares in exchange for the new assets.
The new assets are expected to contribute significantly to earnings in the succeeding periods, increasing the potential dividend per share for AREIT shareholders.
“The infusion of the commercial assets is part of ALI’s commitment as AREIT’s Sponsor to support AREIT’s growth plans of building a larger and more diversified portfolio. The transaction will increase ALI’s ownership in AREIT from 50.1 percent to 66 percent,” AREIT said.
With the completion of the transaction, AREIT’s gross leasable area would reach 549,000 square meters.
The share price of AREIT went up by 0.5 percent Monday to close at P40, while the stock of Ayala Land climbed 6.45 percent to P36.