AREIT, RCR expanding asset portfolio

MANILA, Philippines — Two of the country’s real estate investment trusts (REIT) are making headway in their plans to strengthen their respective portfolios.

Ayala-led AREIT Inc. (AREIT), for instance, has secured the approval of its stockholders on its second P11.3 billion property-for-share swap with its sponsor, Ayala Land Inc.

“This new asset infusion will expand AREIT’s gross leasing area to 673,000 square meters or P64 billion in assets under management (AUM) in 2022 – a 113 percent increase since AREIT went public,” AREIT said in a regulatory filing.

The transaction involves six Cebu-based office buildings with an aggregate value of P11.3 billion in exchange for 252.2 million AREIT primary common shares at a price of P44.65 per share.

Another REIT, Gokongwei-led RL Commercial REIT Inc. (RCR), for its part, has finalized the infusion of the P5.9 billion Robinsons Cyberscape Gamma from its sponsor, Robinsons Land Corp. (RLC).

Under the deal, RLC will get 777.8 million shares in exchange for the infusion to RCR.

Robinsons Cyberscape Gamma is a 37-story, Grade-A, PEZA-registered building with a total gross leasable area of 44,797 sqm.

With the infusion, RCR’s portfolio increases REIT’s asset size by 10.3 percent to 480,500 sqm.

“Following the infusion of Cybergate Bacolod and Cyberscape Gamma, RCR’s projected annual dividend yield for 2022 is 6.06 percent at an IPO Price of P6.45 per share,” RCR said.

“Our goal has always been to grow and diversify the portfolio of RCR through the acquisition of yield-accretive assets. We have been consistent and in line with our target plans as disclosed in our REIT plan, which solidifies our strong commitment to our shareholders,” RCR president and CEO Jericho Go said.

RCR went public in September last year and has since acquired two assets to increase its GLA by 13 percent.

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The article was originally published in Phil Star Global.