ALI sets P15-B AREIT IPO sked

Published July 21, 2020, 10:00 PM

by James A. Loyola

Ayala Land’s AREIT Inc., the first Real Estate Investment Trust (REIT) in the Philippines, is planning to start its P15 billion initial public offering on July 27, 2020 after securing the approval of the Philippine Stock Exchange for the listing of its shares.

In a disclosure, ALI said this is still subject to post-approval requirements for compliance by the Company before the public offering.

The base offer is up to 456.88 million common shares at an offer price of up to P30.05 per share, with a stabilization option of up to 45.69 million common shares.

In total, this represents approximately 49 percent of AREIT’s capital stock.

The Sponsor, Ayala Land Inc., continues to be a trailblazer in the real estate industry as it takes on the bold initiative to pioneer a new asset class in the Philippines through what is poised to be the country’s first REIT.

Both ALI and AREIT are committed to expand the REIT portfolio through organic growth and acquisition of new assets.

The AREIT IPO will be priced today, July 22 and the offer period will run form July 27 to August 3, with listing slated for August 13, 2020.

BPI Capital Corporation acts as the Sole Global Coordinator and Joint Bookrunner for the Offer while UBS AG Singapore Branch is the International Joint Bookrunner for the international tranche of the Institutional Offer.

BPI Capital Corporation, PNB Capital and Investment Corporation, and SB Capital Investment Corporation, will collectively act as the Joint Lead Underwriters for the domestic tranche, and together with the International Joint Bookrunner, will underwrite the respective tranches of the IPO. 

AREIT could raise P1.33 billion in net proceeds from the primary offer for the expansion of its building portfolio through the acquisition of a fourth building, Teleperformance Cebu, excluding the land, from a subsidiary of the sponsor or an alternative property from the sponsor or any of its subsidiaries or affiliates.

Ayala Land, meanwhile, could net about P13.31 billion from the secondary offer, assuming full exercise of the overallotment option. As required under the Revised Implementing Rules and Regulations (IRR) of Republic Act No. 9856, or the REIT Act of 2009, the sponsor shall reinvest the net proceeds in real estate and/or infrastructure projects in the Philippines within a year.