AREIT eyes properties for share swap with ALI

posted April 10, 2021 at 06:30 pm
by  Manila Standard
AREIT, Inc. (AREIT) recently identified the ten properties included in its P15 billion-property-for-share swap transaction with its sponsor, Ayala Land, Inc. (ALI).

AREIT eyes properties for share swap with ALI

AREIT  announced that a total of 205 thousand sq. meters of leasable space, primarily composed of office leasing properties located within Ayala Land’s prime estates in the country, will form part of its roster of REIT assets. 

These are Vertis North Commercial Development which has three office buildings and a retail podium located in Quezon City; One and Two Evotech in Nuvali Santa Rosa, Laguna; Bacolod Capitol Corporate Center and Ayala Northpoint Technohub, both located in Negros Occidental; and office condominium units at BPI-Philam Life buildings in Makati CBD and Madrigal Business Park in Alabang.  

The largest of these properties is Vertis North commercial development (shown in photo) with125,000 sq. meters of leasable space and a retail podium of 39,000 sq. meters.  The three office buildings are 97% occupied and are leased to large BPO locators including Google Services Philippines, Teleperformance, Telus, and Global Payments.  

The retail component is operated by a wholly-owned subsidiary of ALI under the Ayala Malls brand and will pay a monthly guaranteed building lease to AREIT for a period of 36 years. Vertis North commercial development is LEED-certified.

Compelling yields

If the transaction is approved, AREIT’s outstanding common shares will increase to 1,508,910,810 from 1,025,656,435 wherein ALI will own approximately 66% of the total shares.

AREIT’s deposited property value will increase from P37 billion to P52 billion and its leasing portfolio will expand further from 344 to 549 thousand sq. meters. 

“This transaction demonstrates the priority of a well-designed REIT which is to generate compelling yields for its shareholders,” said Carol T. Mills, AREIT president and CEO. 

Topics: ​AREIT Inc. , swap transaction , Ayala Land Inc. , Carol T. Mills
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