Ayala's The 30th sale proceeds to go to new malls, offices
MANILA, Philippines — Ayala Land Inc. has set its sights on seven property buyouts after raising funds through the sale of one of its malls.
In a disclosure to the stock exchange on Monday, Ayala Land said it plans to “reinvest” the P5.1 billion proceeds from the unloading of Ayala Malls The 30th in Pasig to AREIT Inc., an Ayala-backed real estate investment trust.
Ayala Land has a 54% stake in AREIT.
Broken down, Ayala Land wants to buy and develop two mixed-use offices and malls located within Metro Manila and Cebu. The property giant will also invest in an office and one mall in the capital region.
The rest of the proceeds will go to acquisitions of three land parcels in Cavite, Pampanga and Tarlac, the purpose of which was not released. Ayala Land will not reinvest the proceeds from the sale of The 30th in any infrastructure project, it added.
“All disbursements for such projects are intended to be distributed within one year upon receipt of the proceeds from the sale of The 30th to AREIT,” the company said.
In a separate disclosure, AREIT said it will settle an initial 20% down-payment on the day of the signing of the purchase deal, with the balance to be paid to Ayala Land on January 29.
That said, AREIT expects to generate revenues from The 30th starting this month. Being a REIT firm, the additional income will jack up the dividends that AREIT is obligated to pay to its shareholders.
Including The 30th and the recently acquired 98,000-square meter of leased land in Laguna Technopark, AREIT’s recurring income portfolio will reach 344,000 sqm, double the current size of 171,000 sqm. The latest acquisition likewise brings AREIT’s total property value to P37 billion, only 5 months since its initial public offering last year.
Shares in Ayala Land opened the week down 0.5% to close P39.65 each, tracking a bearish mood in the main index. Meanwhile, AREIT was up 2.32% to end trading at P30.85 apiece.
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