AREIT, Inc. (AREIT), the Ayala Land-sponsored real estate investment trust, has signed a Deed of Sale to acquire Teleperformance Cebu (TP Cebu) from ALI’s wholly-owned subsidiary ALO Prime Realty Corporation.
TP Cebu is a Grade-A, PEZA-accredited, and LEED Gold Certified Business Process Outsourcing (BPO) development located in Cebu I.T. Park. It was completed in 2013 with a total gross leasable area (GLA) of 18,092 square meters (sqm).
The building is 100 percent occupied with 17,682 sqm leased by Teleperformance and 410 sqm by McDonald’s.
The addition of TP Cebu to AREIT’s portfolio will increase its total GLA from nearly 153,000 sqm to 172,000 sqm.
“The acquisition in Cebu is strategic for AREIT. Most BPOs in Metro Manila have expansion sites and operations in Cebu because of its strong talent pool. Like in Metro Manila, Ayala Land has a significant share in the Cebu office market,” said AREIT President Carol Mills.
Proceeds from the primary offer raised from AREIT’s initial public offering will be used to purchase the property.
“This maiden acquisition will increase AREIT’s dividend yield consistent with its growth strategy of acquiring prime real estate assets with stable occupancy,” said ALI in a statement. AREIT is scheduled to pay quarterly dividends starting September 2020 and is required to payout at least 90 percent of its income to its shareholders