AREIT acquires Ayala Land mall in Pasig
The board of AREIT Inc., the Ayala Land-led real estate investment trust (REIT), has approved the acquisition of a commercial development called The 30th in Pasig.
The said mall was transferred to AREIT from Ayala Land for the purchase price of P5.1 billion, inclusive of value added tax.
The 30th is a 76,000 square meter prime commercial development along Meralco Avenue in Pasig. The development was completed in 2017 and the office is fully occupied predominantly by business process outsourcing firms. The 30th also has a retail podium operated by Ayala Land, which it will lease from AREIT.
The acquisition of The 30th is targeted to be completed within the first quarter of 2021, the company said.
“We are very excited with the growth prospects for AREIT, starting with the recently acquired Cebu building and now with another acquisition of a prime commercial development in Pasig City. This demonstrates AREIT’S ability to expand its portfolio, add value to its shareholders, while its sponsor Ayala Land reinvests capital for new developments in our country,” Carol T. Mills, AREIT president and CEO, said.
The acquisition of The 30th will increase AREIT'S portfolio of assets to 246,000 square meters of gross leasable area from 170,000 square meters.
“As AREIT intends to fully fund this acquisition through debt, this will have an accretive effect and increase AREIT’S projected dividends,” it said.
AREIT'S board has also approved initiatives to raise up to P6.4 billion to finance future asset acquisitions.
The company has no debt but under the Philippine REIT Law, REITS are allowed to leverage up to 35 percent of total deposited property.
The company’s portfolio consists of Ayala North Exchange, Solaris One and Mckinley Exchange all in Makati. These properties cover a total gross leasable area of about 153,000 square meters and have a total occupancy rate of 99.9 percent.