ALI sells P4 billion AREIT shares

MANILA, Philippines —  Property giant Ayala Land Inc. (ALI) has sold more than P4 billion of its shares in the real estate investment trust (REIT) of the Ayala Group to both local and global institutional buyers.

In a disclosure to the Philippine Stock Exchange, ALI said it sold an aggregate of 100 million common shares of AREIT Inc. for P41.9 a piece.

ALI gained P4.19 billion from the sale, exclusive of fees and taxes, in line with a placement deal signed with UBS AG Singapore Branch, BPI Capital Corp. and Maybank Securities Pte. Ltd.

ALI said the shares were offered and sold to institutional buyers in the US, as authorized by the US Securities Act of 1993. Shares were also tendered to institutional buyers in the Philippines in transactions that fall outside the Securities Regulation Code (SRC).

The builder said the share sale is exempt from the registration requirements of the SRC. However, if the buyers plan on selling the shares, they have to seek approval from the Securities and Exchange Commission, unless the offer is exempt again.

ALI said the proceeds from the sale are set to be handed over on Friday, subject to the terms and conditions of the placement agreement.

The property developer of the Ayala Group committed to submit soon the reinvestment plan detailing how proceeds from the sale would be used.

AREIT is one of the country’s leading REITs, with intent to maintain market leadership and raise shareholder returns in the long run by adding fresh assets annually.

In its three-year investment strategy, AREIT said it is looking to secure P15 billion to P20 billion in fresh properties every year to expand its assets under management. AREIT currently has a P139-billion portfolio, which is up by 19 percent from P117 billion in 2024.

AREIT said it would rely on a mix of debt and equity to finance its expansion. The company can borrow up to the leverage limit of 35 percent of deposited property value to put up fresh capital.