AREIT acquiring P22.5 billion assets via share swap with Ayala Land

MANILA, Philippines — AREIT Inc., the listed pioneering real estate investment trust of the Ayala Group, is expected to increase by nearly three times its assets under management (AUM) since it embarked on its initial public offering in 2020.

The company will add to its portfolio P22.5 billion worth of offices and malls of its sponsor Ayala Land Inc. in a property-for-share swap.

This is nearly thrice the P30 billion AUM or 153,000 square meters of assets it had in 2020.

This new infusion in 2023 will almost triple the company’s AUM to P87 billion and boost its gross leasable area (GLA) more than five-fold to 863,000 sqm, making AREIT one of the largest and the most diversified commercial REITs in the Philippines.

“The rebound of commercial businesses is an opportunity for AREIT to widely diversify its assets with more retail buildings. The infusion of Glorietta 1 and 2 mall and BPO buildings, as well as the brand new One Ayala Avenue BPO towers, is testament to AREIT as Ayala Land’s flagship REIT,” said AREIT president and CEO Carol Mills.

The P22.5-billion worth of assets will be swapped for 607.5 million AREIT primary common shares, as validated by a third-party fairness opinion.

The assets are mainly located in the Makati CBD, specifically, the newest One Ayala Avenue East and West BPO Towers at the corner of Ayala Avenue and EDSA, as well as the Glorietta 1 and 2 mall wing and BPO buildings at Ayala Center.

The MarQuee mall in Angeles, Pampanga, located close to the Angeles exit of the North Luzon Expressway (NLEX), will also be added to AREIT’s portfolio.

These assets have a combined GLA of 190,000 sqm, an overall occupancy rate of 99 percent, and a weighted average lease expiry (WALE) of 14.5 years.