AREIT, Inc. (AREIT) reported that the ten properties included in its P15 billion property-for-share swap transaction with its sponsor, Ayala Land, Inc. (ALI) are in Vertis North, Nuvali, Makati, Alabang and Bacolod.
In a disclosure to the Philippine Stock Exchange, AREIT said the 205,000 square meters of leasable space, primarily composed of office leasing properties located within Ayala Land’s prime estates in the country will form part of its roster of REIT assets.
These are Vertis North Commercial Development which has three office buildings and a retail podium located in Quezon City; One and Two Evotech in Nuvali Santa Rosa, Laguna; Bacolod Capitol Corporate Center and Ayala Northpoint Technohub, both located in Negros Occidental; and office condominium units at BPI-Philam Life buildings in Makati CBD and Madrigal Business Park in Alabang.
The largest of these properties is Vertis North commercial development with 125,000 sqm of leasable space and a retail podium of 39,000 sqm. The three office buildings are 97 percent occupied and are leased to large BPO locators.
The retail component is operated by a wholly-owned subsidiary of ALI under the Ayala Malls brand and will pay a monthly guaranteed building lease to AREIT for a period of 36 years, ensuring stable income to AREIT.
Following this are the Evotech buildings in Nuvali with a total of 23,000 sqm of leasable space which are 100 percent occupied and leased.
The other properties are Bacolod Capitol Corporate Center with 11,000 sqm and Ayala Northpoint Technohub with 5,000 sqm both of which are 100 percent occupied.
The office condominium units in the BPI-Philam Life Buildings in Makati and in Alabang have a total of 1,500 sqm which are also 100 percent occupied and leased.
AREIT’s Board of Directors has approved the subscription of ALI of 483.25 million primary common shares of AREIT in exchange for the identified ALI commercial properties valued at P15.46 billion, to be undertaken at a price of P32.00 per share.
The firm said its deposited property value will increase from P37 billion to P52 billion and its leasing portfolio will expand further from 344 to 549 thousand sqm after the swap.
“This transaction demonstrates the priority of a well-designed REIT which is to generate compelling yields for its shareholders. At the same time, it allows AREIT to grow its assets significantly and increase shareholder value,” said Carol T. Mills, AREIT President and CEO.