Property

AREIT to raise P6.4B from debt market

Ayala-backed AREIT Inc. is tapping the debt market with the planned issuance of as much as P6.4 billion worth of retail bonds and corporate notes.

Ayala-backed AREIT Inc. is tapping the debt market with the planned issuance of as much as P6.4 billion worth of retail bonds and corporate notes.

AREIT has also approved the establishment of credit facilities with banks amounting to P12 billion.

Proceeds from the issuance of up to 10-year bonds will be used to fund asset acquisitions.

The company’s board has agreed to acquire The 30th, a 76,000 square meter commercial development located along Meralco Avenue in Pasig City from its sponsor Ayala Land Inc. The value of the transaction is P5.1 billion.

AREIT recently completed the acquisition of a BPO building in Cebu IT Park as part of plans to further grow its REIT portfolio and increase its dividend yield.

The company offers a new asset class that enables investors to earn from dividends coming from the rental income of high performing commercial assets.

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