Real estate investment trust AREIT Inc. said it has purchased 9.8 hectares of land owned in sister company Technopark Land Inc. in Laguna Technopark, currently leased by Integrated Micro-Electronics Inc. (IMI), also a sister company under the Ayala Group of companies.
This brings up AREIT’s total property value to P37 billion.
Laguna Technopark is a 471-hectare premier industrial park spanning portions of Biñan and Santa Rosa in the province of Laguna currently managed by AyalaLand Logistics Holdings Corp. , a listed subsidiary of Ayala Land Inc., Ayala Land is AREIT’s mother company and REIT listing sponsor.
The property comprised of four parcels was bought for P1.1 billion, inclusive of value-added tax, and will be leased by IMI in the next 7 years.
“The acquisition of this land will directly contribute to AREIT’s income starting this month, adding to the earnings generated by the company’s existing buildings. This will increase the distributable income to its shareholders, demonstrate AREIT’s ability to deliver stable and regular dividends, and strengthen its potential for capital appreciation,” the company said.
AREIT said that together with the acquisition of The 30th in Pasig, AREIT’s portfolio will reach 344,000 square meters (sq.m.) of leasable space, double its current size of 171,000 sq.m., only five months from its initial public offering.