AREIT Inc. has received regulatory approval for the infusion of P22.48 billion-worth of assets from its mother company, Ayala Land Inc., and sister companies Ayalaland Malls Inc. and Northbeacon Commercial Corp.
The assets involve four prime office buildings in Ayala Commercial Center in Makati City and two regional flagship malls in Makati City and Angeles City that will be exchanged for 607.56 million AREIT shares.
The retail and office spaces have a combined gross leasable area (GLA) of 190,000 square meters (sq.m.) and an overall occupancy rate of 99 percent.
Ayala Land in March said the spaces have a weighted average lease expiry of 14.5 years.
“The new assets are expected to contribute to earnings of the company beginning in the third quarter of 2023,” AREIT said.
With the completion of the transaction, AREIT said its GLA will grow more than five-fold to 863,000 sq.m., or approximately P87 billion in asset under management in 2023, nearly triple its size since the company went public.
The transaction will increase Ayala Land’s stake in AREIT to 66 percent.
