Ayala Land Inc. said it has signed the agreement that will enforce an earlier plan to infuse additional assets into its real estate investment trust unit AREIT Inc.
The company together with units AREIT, Westview Commercial Ventures Corp., and Glensworth Development Inc. signed the agreement that will increase AREIT’s assets by P15.46 billion through an asset-for-share-swap arrangement.
The assets cover office leasing properties located within Ayala Land’s prime estates that include 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 arrangement entails for AREIT to issue 483.25 million AREIT shares to Ayala Land, Westview Commercial, and Glensworth at an issue price of P32 per share.
The shares to be swapped will be sourced from AREIT’s shares of stock that was increased to P29.5 billion divided into 1.51 billion shares, from P11.74 billion divided into 1.02 billion shares as approved by shareholders.
The swap will increase Ayala Land’s stake in AREIT to 66 percent from post-transaction of 45.04 percent.
The swap will increase AREIT’s portfolio to 549,000 sq.m., from 344,000 sq.m., worth P52 billion compared to the current P37 billion.
“At the transaction price of P32 per share, the assets to be infused are yield accretive to AREIT at a capitalization rate of 6 percent, Ayala Land said.
