AREIT, INC. to its sponsor Ayala Land, Inc. through its sixth property-for-share swap. (ALI) is set to increase its assets under management (AUM) by adding P19.5 billion worth of commercial mall properties.
In a disclosure on Wednesday, AREIT said its board of directors has approved an asset swap with ALI and its wholly owned subsidiary Summerhill Commercial Ventures Corp for shares. The transaction will increase AREIT's AUM by P158 billion and expand its total gross leasable area (GLA).
Under the share swap deal, ALI and SummerHill will subscribe for 441.13 million primary common shares of AREIT in exchange for Ayala Center in Cebu Business Park and Ayala Malls Feliz on Amang Rodriguez Avenue, Pasig City.
The combined building GLA of these two assets is 375,000 square meters (sq m), bringing AREIT's total GLA to 4.7 million sq m. It covers 1.8 million square metres. Building GLA and 2.9 million sq.m. Industrial Land GLA
After the transaction, 1.8 million sq.m. The GLA development will consist of 40% office, 54% retail and 6% hotel – boosting AREIT's retail share and expanding its presence in Metro Manila and Cebu.
“This latest investment strengthens AREIT's portfolio with two dynamic retail destinations, increasing both our geographic reach and asset mix. As we continue to build scale with quality, our shareholders will benefit from a larger and more diversified portfolio,” said Alberto M. de Larrazábal, AREIT Chairman and Chief Executive Officer.
ALI and AREIT plan to complete the deal in the second half of 2026.
The transaction is subject to AREIT shareholders' approval and regulatory clearance. Once finalized, total investments for the year will amount to P40.5 billion, the largest annual increase in AREIT history.
Similar to previous transactions, the company said this investment is expected to support dividend growth and improve yields.
At the local bourse on Wednesday, AREIT shares closed at P43, down 0.12% or 5 centavos, while ALI shares closed at P20.15, down 2.66% or 55 centavos. -Alexandria Grace C. Magno
