Ayala Land gets SEC nod to list its REIT

Ayala Land has secured the approval of the Securities and Exchange Commission to list its real estate investment trust with an initial public offering size of as much as P15.1 billion.

AREIT Inc. registered with the SEC up to 47.86r million new common shares and up to 409.019 million existing common shares with an overallotment option of up to 45.688 million secondary shares. The shares will be sold at a maximum offer price of P30.05 each.

The offer period will run from July 27 to 31 while the debut on the Philippine Stock Exchange has been set on Aug. 7.

Net proceeds from the offer, amounting to P1.33 billion, will be used to purchase Teleperformance Cebu, its fourth building.

Ayala Land, meanwhile, could net about P13.31b billion from the secondary offer, assuming full exercise of the overallotment option.

Under the REIT Act of 2009, the sponsor shall reinvest the net proceeds in real estate and/or infrastructure projects in the Philippines within a year.

BPI Capital Corp. is the sole global coordinator. It will also act as joint bookrunner, together with UBS AG Singapore Branch, and joint lead underwriter, along with PNB Capital and Investment Corp. and SB Capital Investment Corp.

Assuming full exercise of the overallotment option, the public could own 49% of AREIT.

At present, AREIT’s property portfolio consists of three commercial buildings, excluding the land on which they stand, namely Solaris One and Ayala North Exchangem.

AREIT Fund Managers will manage AREIT’s with a focus on generating rental income and increasing the company’s assets over time.

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