Ayala Land swaps properties for shares in AREIT

AYALA Land, Inc. (ALI) has executed the deed of exchange for the property-for-share swap transaction with its real estate investment trust AREIT, Inc., both listed companies told the exchange on Wednesday.

The transaction will issue Ayala Land and its subsidiaries, Westview Commercial Ventures Corp. and Glensworth Development, Inc., 483,254,375 primary common shares of AREIT at P32 apiece in exchange for Ayala Land’s properties valued at P15.46 billion altogether.

The shares will be sourced from AREIT’s authorized capital stock, which it seeks to raise to P29.5 billion from P11.74 billion, pending approval from the Securities and Exchange Commission (SEC).

“Following the execution of the deed of exchange, the involved parties will submit the application for the increase in authorized capital stock, and the property-for-share swap, specifically the request for confirmation of valuation, and exemption from registration, to the SEC within the month,” Ayala Land and AREIT said in their disclosures.

Once regulatory approval is received, both companies will apply for a certificate authorizing registration with the Bureau of Internal Revenue and the listing of the additional shares with the Philippine Stock Exchange within this year.

“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,” Ayala Land said.

The properties in the property-for-share swap include the following: Vertis North Commercial Development, Evotech Buildings 1 and 2, Bacolod Capitol Corporate Center, Ayala Northpoint Technohub, and office condominium units at BPI-Philam Life Buildings in Makati and Alabang.

This will expand AREIT’s portfolio to 549,000 square meters (sq.m.) from 344,000 sq.m., as its deposited property value will also increase to P52 billion from P37 billion.

Meanwhile, the transaction bumps up Ayala Land’s ownership in AREIT to 66% from 50.1%.

Shares of Ayala Land at the stock exchange went up by 3.65% or P1.35 to close at P38.30 each, while AREIT stocks declined by 1.93% or 70 centavos to close at P35.65 each. — Keren Concepcion G. Valmonte

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