ALI sells Pasig dev’t to AREIT


    Ayala Land Inc. is transferring to its listed real estate investment trust (RIET) unit AREIT Inc. its office cum mall development, The 30th in Pasig for P5.1 billion.

    “The planned acquisition of The 30th will allow AREIT to increase its total portfolio of assets from 170 thousand to 246 thousand square meters of gross leasable area. As AREIT intends to fully fund this acquisition through debt, this will have an accretive effect and increase AREIT’s projected dividends,” AREIT said in a statement.

    The acquisition of The 30th is targeted to be completed within the first quarter of 2021.

    As part of the transaction, AREIT will be raising P6.4 billion in debt to finance acquisitions.

    AREIT said it currently has no debt and under the Philippine REIT law, is allowed to leverage up to 35 percent of total deposited property.

    The sale of The 30th follows the to AREIT of Teleperformance Cebu (TP Cebu) from sister company ALO Prime Realty Corp., in exchange for the proceeds of the former’s initial public offering in August. “We are very excited with the growth prospects for AREIT, starting with the recently acquired Cebu building and now with another acquisition of a prime commercial development in Pasig City. This demonstrates AREIT’s ability to expand its portfolio, add value to its shareholders, while its Sponsor Ayala Land reinvests capital for new developments in our country,” said Carol Mills, AREIT president.