Ayala Land is infusing its 153-keys Seda Lio hotel into its real estate investment trust (REIT), AREIT Inc.
AREIT is acquiring Seda Lio for P1.19 billion in cash, exclusive of value-added tax (VAT).
Seda Lio, operated by Ayala Land unit, Econorth Resort Ventures Inc., caters primarily to leisure tourists, families, social and corporate events, and other visitors in El Nido, Palawan.
“With the acquisition, AREIT will earn a guaranteed building lease from the hotel operator, Econorth Resort Ventures over the next 25 years beginning January 2024,” the company said.
AREIT said 95 percent of the purchase price shall be paid upon signing of the deed of absolute sale. The remaining 5 percent meanwhile shall be paid to the seller not later than 30 September 2024.
AREIT said the transaction is part of its “2024 growth plans which will include infusions from its sponsor of flagship buildings Ayala Triangle Gardens Tower 2, luxury malls Greenbelt 3 and 5 in Ayala Center, Seda hotel in Ayala Center Cebu, and Holiday Inn and Suites Makati, worth P21.8 billion.
Complementing the Ayala Land infusions is the acquisition of a 276-hectare industrial land in Zambalaes from Buendia Christiana Holdings Corp., a wholly-owned subsidiary of ACEN Corp.
“The acquisition of Seda Lio, alongside the planned asset infusions in 2024 will not only enlarge and expand AREIT’s footprint, but also diversify its assets and reduce concentration risks,” said Carol Mills, AREIT chief executive officer.
“Altogether, this will bring AREIT’s total Assets under Management from P87 billion to P117 billion , nearly quadruple the size of the company when it first listed in August 2020,” Mills added.