SEC approves AREIT, Cityland fund raisers

Published December 11, 2021, 8:10 PM

by James A. Loyola

The Securities and Exchange Commission (SEC) has approved the planned public offerings by AREIT, Inc. and Cityland, Inc.

In its meeting on Dec. 9, the Commission En Banc resolved to render effective the registration statements of AREIT for a P15 billion debt securities program and of Cityland for P500 million worth of commercial papers.

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The approvals though are still subject to the companies’ compliance with certain remaining requirements.

AREIT may issue the bonds in one or more tranches within a period of three years. The first tranche will comprise up to P3 billion of fixed-rate bonds due 2023.

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The real estate investment trust sponsored by listed property developer Ayala Land, Inc. expects to net up to P2.96 billion from the first tranche.

The proceeds will be used to refinance debt and to partially finance the acquisition of The 30th, a mixed-use commercial development in Pasig City.

The bonds, which will be offered at face value, will be listed and traded on the Philippine Dealing & Exchange Corp. (PDEx).

The offer will run from December 13 to 16, in time for the bonds’ listing at the PDEx on Dec. 23, according to the latest timetable submitted to the SEC.

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Cityland, meanwhile, will offer to the public P500 million worth of commercial papers. The listed real estate company expects to net up to P495.69 milion from the offer, for project-related costs, payment of maturing loans or notes, and interest expense.

Among others, the proceeds from the offering will be used to partially finance the construction of One Premiere, a 27-storey commercial and residential condominium in Las Pinas City.

 
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