AREIT Inc., the real estate investment trust (REIT) of Ayala Land Inc. (ALI), on Monday said the Securities and Exchange Commission (SEC) has approved the infusion of certain properties into the company.
Commercial properties of Ayala Land units, Westview Commercial Ventures Corp. and Glensworth Development Inc., valued at P15.46 billion would be infused into AREIT. In exchange for the properties, Ayala Land and its units will subscribe to AREIT’s 483.25 million common shares at P32 per share.
AREIT’s shares closed at P40 apiece on Monday.
The company has also increased its authorized capital stock to P29.5 billion shares from the current P11.74 billion shares.
The transaction will increase Ayala Land’s ownership in AREIT to 66 percent from 50.1 percent.
“The infusion of the commercial assets is part of ALI’s commitment as AREIT’s sponsor to support AREIT’s growth plans of building a larger and more diversified portfolio,” the company said.
With the completion of the transaction, AREIT’s gross leasable area would expand to 549,000 square meters.
The assets that will be infused into Areit include Vertis North commercial development, Evotech Buildings 1 and 2, Bacolod Capitol Corporate Center, Ayala Northpoint Technohub and the office condominium units at BPI-Philam Life Buildings in Makati and Alabang.
Vertis North is a 125,507.39 sqm of leasable space and a retail podium of 39,305.76 sqm. The three office buildings are 97 percent occupied and are leased to large BPO locators including Google Services Philippines, Teleperformance, Telus and Global Payments. The retail component is operated by the Ayala Malls brand.
Evotech Buildings 1 and 2 have a combined total of 23,723.27 sqm of leasable office space owned by Glensworth Development. The buildings are 100 percent occupied and leased to Concentrix CVG Philippines and IBM Business Services.
Bacolod Capitol Corporate Center has 11,313.14 sqm of leasable office space and 100 percent occupied by ARB Call Facilities. It is owned Westview Commercial.
Ayala Northpoint Technohub, also owned by Westview Commercial, is a 4,653.50 sqm of leasable office space and 100 percent occupied by Iqor.
The BPI-Philam Life Buildings in Makati and Alabang has 1,623 sqm of leasable space. It is 100 percent occupied and leased to Oberthur Card Systems in Makati and Amaia Land in Alabang.