AREIT Inc., the real estate investment trust (REIT) of Ayala Land Inc., has expressed optimism its pioneering foray into the fundraising securities scheme will perk up the industry and encourage more REIT issuances.
AREIT is in the middle of a P12.34-billion REIT initial public offering (IPO). It is offering to the public an initial 47.86 million primary shares and another 409.02 secondary shares comprising the firm offer, and 45.69 million secondary shares covering the overallotment option.
Ayala Land, the REIT sponsor, is also a selling shareholder in the IPO.
AREIT will have its IPO run between July 27 and August 3, with listing eyed on August 13, 2020.
“AREIT’s IPO is not only for Ayala Land, but also for the continued development of the Philippine capital markets. Since the REIT law was passed in 2009, domestic and foreign investors have been eagerly awaiting to invest in REITs in the Philippines,” said Jose Emmanuel Jalandoni, AREIT chairman.
“We hope our efforts to become the first company to offer this product will pave the way for more REIT listings in the future. REITs will enable capital recycling to further promote developments in the country,” he added.
AREIT will gross P1.29 billion from the overall IPO proceeds, the rest going to Ayala Land, which will be used to fund the acquisition of sister company Teleperformance Cebu from ALO Prime Realty Corp., an alternative property from Ayala Land, or any of its subsidiaries or affiliates, that “financially and strategically meets or exceeds Teleperformance Cebu and AREIT’s financial and strategic investment criteria.”
AREIT’s portfolio consists of three Grade A properties in Makati City – Solaris One, Ayala North Exchange and McKinley Exchange – with a gross leasable area (GLA) of 152,755.80 square meters (sq.m.) and a total occupancy rate of 99.9 percent.