AREIT sets properties for share swap

AREIT Inc. on Wednesday identified the 10 properties to be included in its P15-billion property-for-share swap transaction with sponsor Ayala Land Inc.

In a filing to the exchange, the real estate investment trust (REIT) company said that 205,000 square meters of leasable space will be part of its assets.

The properties include Vertis North Commercial Development in Quezon City, which has three office buildings and a retail podium, One and Two Evotech in Laguna, and Bacolod Capitol Corporate Center and Ayala Northpoint Technohub in Negros Occidental.

The office condominium units at BPI-Philam Life buildings in Makati and the Madrigal Business Park in Alabang will also be part of the transaction.

“This transaction demonstrates the priority of a well-designed REIT which is to generate compelling yields for its shareholders. At the same time, it allows AREIT to grow its assets significantly and increase shareholder value,” AREIT President and Chief Executive Officer Carol Mills was quoted as saying.

AREIT recently disclosed that its board approved the increase of its capital stock to P29.5 billion and Ayala Land’s shares subscription in exchange for the P15.46-billion commercial properties.

Ayala Land will subscribe to 483.25 million primary common shares of AREIT at P32 each.

This will increase AREIT’s deposited property value to P52 billion and expand its leasing portfolio to 549,000 square meters.

The transaction is still subject for approval of AREIT’s stockholders and regulatory bodies.

Shares of AREIT were up 20 centavos or 0.61 percent to finish at P33 apiece on Wednesday.

Article and Photo originally posted by Manila Bulletin last March 25, 2021 and written by Faye Almazan.