Ayala Land raises P4 billion from block sale of AREIT ahead of asset infusion

By Beatriz Marie D. Cruz, Reporter

AYALA LAND, INC. raised P4.19 billion from a block sale of 100 million shares in its real estate investment trust AREIT, Inc., as it prepares to inject mall properties into the trust.

The shares were sold at P41.90 each through a placement managed by UBS AG Singapore Branch, BPI Capital Corp. and Maybank Securities Pte. Ltd., the listed Philippine developer said in a stock exchange filing on Wednesday.

The offering was made to buyers both outside and within the US. The transaction was exempt from registration requirements under the Securities Regulation Code and was not registered with the Securities and Exchange Commission. Proceeds are set to be settled on Nov. 28.

“The block sale helps raise the public float of AREIT in anticipation of the upcoming infusion of Ayala Center Cebu and Ayala Malls Feliz,” Juan Paolo E. Colet, managing director at China Bank Capital Corp., said in a Viber message. “It also enables Ayala Land to recycle capital into new projects to sustain growth.”

AREIT plans to expand its assets under management by P19.5 billion through a property-for-share swap with Ayala Land and its wholly owned unit Summerhill Commercial Ventures Corp.

Under the deal, the sponsor will contribute Ayala Center Cebu in Cebu Business Park and Ayala Malls Feliz in Pasig, boosting AREIT’s managed assets to P158 billion.

The combined gross leasable area of the two properties is 375,000 square meters (sq.m.), lifting AREIT’s total area to 4.7 million sq.m. The swap will let Ayala Land and Summerhill subscribe to 441.13 million primary common shares of AREIT.

Shares of Ayala Land fell 0.94% to P21 each at the close of trading at the Philippine Stock Exchange, while AREIT ended at P42.15, down 3.44%, reflecting broader market volatility amid the block sale.

The transaction positions AREIT to broaden its investor base ahead of its asset infusion while giving Ayala Land additional capital flexibility to fund its pipeline of commercial projects.