MANILA - Listed real estate investment trust AREIT Inc said on Wednesday it will conduct a property-for-share swap with its sponsor Ayala Land worth P22.5 billion.
The transaction involves flagship offices and malls amounting to P22 P22,479,697,060 for 607,559,380 AREIT primary common shares, AREIT said in a disclosure to the stock exchange.
Assets for the property swap are located in Makati central business district, including One Ayala Avenue East and West BPO Towers, Glorietta 1 and 2 mall wing and BPO buildings at Ayala Center, the company said.
MarQee mall in Angeles, Pampanga will also be added to its portfolio, AREIT said. The said assets have a combined gross leasable area (GA) of 190,000 sqm, it said.
The transaction will bring AREIT's Asset Under Management (AUM) to P87 billion, from P30 billion in 2020, it said.
"The rebound of commercial businesses is an opportunity for AREIT to widely diversify its assets with more retail buildings," said AREIT President and CEO Carol Mills.
"As we did in the last 2 years, we are committed to continually grow and diversify our assets to increase shareholder value for AREIT while ALI maximizes capital recycling and reinvests further in Philippine real estate," she added.
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