Share swap deal of Areit, Ayala Land gets SEC nod
AREIT inc., the real estate investment trust sponsored by property developer Ayala Land inc., on Wednesday said it has obtained the Securities and exchange Commission’s (SEC) approval for their share swap deal valued at P11.25 billion.
Ayala Land will subscribe to 252.13 million Areit shares in exchange for identified cebu commercial properties.
in anticipation of the approval, Areit has already declared its third quarter 2022 dividends last october 11 at P0.49 per share, to stockholders of record as of october 25. the announcement was made ahead of its regular quarterly dividend declaration.
“the new assets are expected to contribute to earnings of the company in the succeeding periods,” Areit said.
in line with this, the parties have executed an amendment to Section 4.3 of the deed of exchange effecting the recognition of income from the new assets by Areit for the fourth quarter of 2022.
the buildings that will be infused into Areit, which have overall occupancy of between 1 percent and 99 percent, are all in cebu it Park. these are ebloc 1, a 20,842 square meters of gross leasable space completed in 2009; ebloc 2, a 27,727 sq.m. property completed in 2011; ebloc 3, a 15,233 sq.m. property completed in 2014; ebloc 4, a 16,167 sq.m. property completed in 2015; Acc tower with 27,517 sq.m. which was completed in 2016; and tech tower 1, which has 16,813 sq.m. and was completed in 2018.
Areit said it will apply for the Bureau of internal Revenue’s certificate authorizing registration for the new assets and listing the shares in favor of Ayala Land within the first quarter.
Upon approval, Areit’s outstanding common shares will increase to 1.76 billion common shares from 1.5 billion common shares, in which Ayala Land will own about 66 percent of the total.
With the completion of the transaction, Areit’s gross leasable area has expanded to 673,000 square meters.
At the closing price of P35.70 on January 17, the company’s total market capitalization reached P63 billion, from P27 billion during its initial public offering in 2020.