MANILA - The depositary property value of AREIT Inc is expected to reach P52 billion due to a property-for-share swap transaction with sponsor Ayala Land Inc, it said Wednesday.
Ayala Land's asset infusion will increase AREIT's leasing portfolio to 549 thousand square meters from 344 and will contribute to its operating cashflows, AREIT Inc said in a disclosure to the stock exchange.
Assets are composed of office leasing properties located within Ayala Land's prime estates across the country, the company said.
“We are excited to present this transaction to our shareholders as we deliver on our commitment to expand further and create more value," AREIT president and CEO Carol Mils said.
“The priority of AREIT is to deliver to its investors a compelling yield that grows over time. This is derived from its stable recurring income with contracted escalations, as well as the addition of new assets in the portfolio," she added.
AREIT is the country's first real estate investment trust to list in the Philippine Stock Exchange followed by DoubleDragon Properties Corp's DDMP.