AREIT sets expansion, elects JAZA daughter

Published April 27, 2021, 6:00 AM

by James A. Loyola

AREIT Inc., Ayala Land’s pioneering Real Estate Investment Trust (REIT) is primed for growth and expansion after its shareholders approved an increase in its capital and the infusion of new assets.

During AREIT’s first Annual Stockholders’ Meeting, stockholders approved the increase in the company’s authorized capital stock from P11.7 billion to P29.5 billion along with the infusion of P15.5 billion worth of commercial assets from its Sponsor, Ayala Land, Inc. (ALI) in exchange for 483 million shares. 

In the same stockholders meeting, AREIT also secured approval to increase the number its directors from seven to eight and elected a new member to its Board, Mariana Zobel de Ayala. The daughter of Ayala Corporation Chairman Jaime Augusto Zobel de Ayala will assume the position as soon as the Securities and Exchange Commission approves the amendment of the company’s Articles of Incorporation. 

To increase AREIT’s authorized capital, ALI and its subsidiaries, Westview Commercial Ventures Corporation and Glensworth Development Inc., will infuse ten properties into AREIT’s leasing portfolio, boosting its gross leasable area from 344,000 square meters (sqm) to 549,000sqm.

These are Vertis North Commercial Development (three office towers and a retail podium) in Quezon City, One and Two Evotech Buildings in Nuvali Sta Rosa, Laguna, Bacolod Capitol Corporate Center and Ayala Northpoint Technohub in Bacolod, and the BPI Philam Life office units in Ayala Avenue, Makati City and Madrigal Business Park, Alabang. 

These properties are strategically located within Ayala Land developments in key growth centers across the country and will diversify AREIT’s geographic reach and tenant base.

The properties have an excellent operating track record, 98 percent average occupancy, and a stable tenant mix of multinational companies and top players in the BPO industry. 

With the addition of these new assets, AREIT’s deposited property value will reach P52 billion. This move will further increase AREIT’s cashflows which will result into higher distributable income for its shareholders. 

AREIT President and CEO Carol T. Mills noted that “Despite the challenging conditions of the pandemic, AREIT remained relatively resilient. We focused on opportunities to create value for our shareholders, democratize commercial real estate and promote reinvestment in the country.”