MANILA, Philippines — Property giant Ayala Land Inc. (ALI) has raised P2.72 billion from a fresh round of block sale of shares of AREIT Inc.
In a stock exchange filing, ALI said it sold 75 million common shares of AREIT at P36.2 apiece under a placement agreement with UBS AG Singapore Branch and BPI Capital Corp.
ALI expects the proceeds from the block sale to be settled on Sept. 24, subject to the terms and conditions of the placement agreement.
“The transaction was multiple times oversubscribed, given the solid demand from high-quality, long-only institutional investors,” the company said.
ALI said it would submit a reinvestment plan detailing the use of proceeds from the block sale in due course.
Last May, ALI announced that it has sold more shares of AREIT in line with the company’s property-for-share swap transaction with the listed real estate investment trust.
Together with its wholly owned subsidiary Westview Commercial Ventures Corp., ALI then sold a total of 98 million common shares of AREIT at P32.45 apiece, equivalent to a total of P3.18 billion.
The company also sold P5.6 billion worth of AREIT shares at the start of the year.
To accelerate growth, AREIT secured stockholders’ ratification in February for the property-for-share swap transaction with ALI and its subsidiaries involving Ayala Triangle Tower Two, Greenbelt Mall 3 and 5, Holiday Inn and Suites Makati and SEDA Ayala Center Cebu with a value of P21.8 billion as well as the 276-hectare industrial land located in Zambales owned by Buendia Christiana Holdings Corp. with a value of P6.8 billion.
AREIT completed its cash acquisition of SEDA Lio in El Nido, Palawan from ALI subsidiary Econorth Resort Ventures Inc. for P1.19 billion last January.
The planned infusions will bring AREIT’s assets under management to P117 billion, in line with the company’s objectives to significantly expand and diversify its portfolio to capitalize on various growth opportunities across the real estate sector.