AREIT completes Seda Lio purchase

AYALA-LED real estate investment trust AREIT Inc. announced on Wednesday the completion of a P1.19-billion deal to acquire the 153-room Seda Lio in El Nido, Palawan, from Ayala Land Inc. (ALI) subsidiary Econorth Resort Ventures Inc.

With the acquisition, AREIT will earn a guaranteed building lease from Econorth Resort Ventures over the next 25 years starting this month, the firm told the stock exchange.

The latest acquisition forms part of AREIT’s expansion plans this year, which includes the purchase of industrial land in Zambales from a unit of ACEN Corp., as well as a property-for-share swap transaction with ALI and its subsidiaries.

“The acquisition of Seda Lio, alongside the planned asset infusions in 2024, will not only enlarge and expand AREIT’s footprint but also diversify its assets and reduce concentration risk,” Carol Mills, the company’s president and chief executive officer, said.

“Altogether, this will grow AREIT’s assets under management from P87 [billion] to P117 billion, quadruple the company’s size when it first listed in August 2020,” she added in a statement.

In November, the Ayala-led real estate investment trust said it was expecting a substantial boost to its portfolio with the acquisition of roughly P29.79 billion worth of assets from sister companies ALI and ACEN.

AREIT said it would be entering a P21.83-billion property-for-share swap deal with ALI and its subsidiaries, Greenhaven Property Ventures Inc. and Cebu Insular Hotel Co. Inc.

Under the transaction, the companies will subscribe to about 642.15 million primary common shares of AREIT in exchange for ALI’s flagship Makati properties and prime hotels, as well as Seda Ayala Center Cebu.

AREIT also plans to acquire the 276-hectare Zambales land from ACEN Corp. unit Buendia Christiana Holdings Corp. for P6.77 billion.