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AREIT property value to jump to P52 billion after ALI asset infusion

Iris Gonzales (The Philippine Star) - March 19, 2021 - 12:00am

MANILA, Philippines — AREIT Inc., the real estate investment trust of the Ayala Group, will increase its property value to P52 billion via a P15.5 billion asset infusion by Ayala Land Inc.

This would be done through a property-for-share swap transaction with its sponsor ALI. The transaction will be presented to shareholders for approval during AREIT’s first annual stockholders meeting on April 23, 2021.

As a result of the asset infusion by ALI, AREIT’s leasing portfolio would expand to 549,000 square meters from 344,000 sqm and boost its operating cashflows, resulting in higher dividends for its shareholders.

AREIT’s board of directors approved the increase in the company’s authorized capital stock to P29.5 billion from P11.7 billion.

It likewise approved the subscription by ALI of 483.2 million primary common shares of AREIT in exchange for identified ALI commercial properties valued at P15.5 billion.

AREIT’s outstanding common shares will increase to 1.5 billion from one billion with ALI owning approximately 66 percent of the total shares.

The assets are primarily composed of office leasing properties located within ALI’s prime estates in the country.

AREIT delivered P1.32 per share in dividends in 2020. Last January, AREIT added two prime assets in its portfolio – The 30th commercial development in Pasig and an industrial land leased by Integrated Micro-Electronics Inc. located in Laguna Technopark.

The two properties have added 175,000 sqm of leasable space to AREIT’s portfolio and brought its total property value to P37 billion this year.

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