Ayala Land to infuse P23B of assets into AREIT

Ayala Land Inc. is set to infuse P23-billion worth of prime commercial properties into its real estate investment trust AREIT Inc. next year, including flagship assets such as office buildings and hotels in Makati.

In a regulatory filing, AREIT said among the approved asset infusions for 2024 are the Ayala Triangle Gardens Tower 2 at the corner of Paseo de Roxas and Makati Avenue, and luxury malls Greenbelt 3 and 5.

Also included are the Holiday Inn and Suites Makati at Ayala Center and Seda Ayala Center Cebu.

“We believe in the synergistic goals between ALI as sponsor and AREIT. ALI has infused a total of P59 billion in assets into AREIT since its IPO in 2020,” ALI president and chief executive officer, and AREIT chairman Anna Ma. Margarita Dy said.

“The inclusion of Ayala Tower Two and Greenbelt 3 and 5 — some of ALI’s prime assets in Makati, is a testament to our continued commitment to AREIT’s long-term growth,” she added.

Under the terms, ALI and its subsidiaries Greenhaven Property Ventures Inc. and Cebu Insular Hotel Co. Inc. will subscribe to 642,149,974 primary common shares of AREIT at P34.00 per share, in exchange for the Makati and Cebu properties valued at P21.8 billion.

The transaction will be up for approval of AREIT shareholders in a special stockholders meeting scheduled in February 2024, before securing the concurrence of the pertinent regulatory bodies.

AREIT will also acquire Seda Lio in El Nido, Palawan from ALI’s subsidiary Econorth Resort Ventures for P1.9 billion, which is expected to boost its first-quarter 2024 net income.

It will also acquire a 276-hectare industrial land in Zambales from Buendia Christiana Holdings, a wholly-owned subsidiary of ACEN Corp., for P6.77 billion. This will then be leased by another subsidiary of ACEN, Giga Ace 8 Inc. for its solar plant operations.

The planned infusions are set to bring AREIT’s assets under management (AUM) to P117 billion, with a gross leasable area of over 1 million square meters, and a leased industrial land area of 286 hectares by 2024.

“We deliberately planned the acquisitions to have a healthy mix of malls, offices, hotels, and industrial properties, which broadens our portfolio and mitigates concentration risk to a particular sector,” AREIT president and chief executive officer Carol Mills said.—AOL, GMA Integrated News