Property developer Ayala Land Inc. (ALI) is infusing additional properties in AREIT Inc. worth some P15.46 billion via a property-for-share swap transaction.
In their separate disclosures to the Philippine Stock Exchange, AREIT—the real estate investment trust arm of Ayala Land— will increase its authorized capital stock to P29.5 billion from the previous P11.74 billion.
Ayala Land will subscribe to some 483.25 million primary common shares in AREIT’s in exchange for identified commercial properties. The property firm will buy the said shares at P32 apiece.
The said transactions are subject for approval by AREIT’s shareholders in their annual meeting in April.
With the transaction, AREIT’s leasing portfolio will increase to 549,000 square meters from 344,000 square meters while deposited property value will rise to P52 billion from P37 billion.
“Until the Deed of Exchange is executed by the parties and approved by the regulators, no asset nor share shall transfer between ALI and AREIT,” the company said.
Ayala Land, meanwhile, said all of the greenhouse gasses discharged by its properties will be fully offset by the end of next year by switching to renewable energy or planting more trees.
The company claimed that it has already reached 91 percent carbon neutrality and targets to be fully neutral by next year.
Manny Blas, head of corporate services of Ayala Land Estate Group, said the company is confident of hitting the target by the end of next year.
In 2017, the company targeted to reduce its carbon footprint to zero in 5 years, through a combination of measures including the use of renewable energy, the use of natural lighting and ventilation and energy-efficient cooling facilities and offsetting emissions with natural regeneration efforts like tree planting and reforestation.
To achieve the 100-percent goal of offsetting carbon emissions in its commercial properties by 2022, the company has set the following targets for this year: Shifting 5 additional buildings to renewable energy use; and planting 30,000 trees across an estimated 50 hectares within its carbon forests.
Blas said 63 percent of total gross leasable area of commercial properties are now using renewable energy, 25,000 trees were planted across 24 hectares of its carbon forests in 2020 alone and 80 percent of the total carbon forest area are covered with trees.