Ayala Land Inc. said that it sold P2.78 billion-worth of AREIT Inc. shares in what market observers say is in preparation for future asset infusion into the real estate investment trust (REIT).
Ayala Land said the transaction involved 75 million shares sold at P37 apiece to investors overseas.
“The transaction was upsized on the back of strong participation from local long only and international investors, and was multiple times oversubscribed,” said Ayala of the sale that involved BPI Capital Corp. and UBS AG Singapore Branch.
“The proceeds from the block sale shall be settled on December 12, 2024, subject to the terms and conditions of the placement agreement,” the realtor said.
Ayala Land however failed to provide how the valuation of the share sale was determined. Prior to the announcement of the sale, AREIT was priced at P39.85 per share.
Stockbroker Abacus Securities Corp. noted that the sale comes after the 75 million share sale of AREIT by Ayala Land as well in September at P36.20 apiece, which it also attributed to a preparation for an asset infusion next year.
“As we said at the time, the sale may be in preparation for another asset infusion next year, which also applies to this reported new transaction, as the current free float of AREIT is already much higher than the minimum required for REITs,” it said.
