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Manila Bulletin devider Business devider The Stock Market devider AREIT to acquire Fairmont Raffles, major malls in ₱20-billion property swap

AREIT to acquire Fairmont Raffles, major malls in ₱20-billion property swap

Published Aug 10, 2026 02:38 pm
AREIT Inc., the real estate investment trust sponsored by Ayala Land Inc., agreed to acquire three hotels and four shopping malls from its parent developer in a transaction valued at ₱19.95 billion.
In a disclosure to the Philippine Stock Exchange, AREIT said the property injection consists of a ₱17.33 billion property-for-share swap alongside a ₱2.62 billion direct cash transaction.
Under the equity arrangement, Ayala Land and its subsidiaries—Capitol Central Commercial Ventures Corp., Makati Cornerstone Leasing Corp., Bay City Commercial Ventures Corp., and North Triangle Hotel Ventures Inc.—will receive 462.48 million AREIT shares priced at ₱37.48 apiece.
The asset transfer includes Glorietta 4 and Ayala Malls Circuit in Makati, Ayala Malls Capitol Central in Bacolod, Ayala Malls Cloverleaf in Quezon City, the New World Makati Hotel, and the Seda Vertis North hotel. In a separate cash deal, AREIT will purchase the Fairmont Raffles Hotel Makati from ALI Makati Hotel and Residences Inc.
The transaction remains subject to approval by AREIT shareholders at a special meeting scheduled for Sept. 23, 2026, as well as final regulatory clearances.
AREIT will structure the mall acquisitions under direct lease contracts, matching its existing office properties to directly recognize retail rental earnings.
The hotel assets will operate under hybrid master leases combining fixed base rent with variable returns tied to operational revenues, giving the trust a balance of guaranteed yields and performance upside.
The announcement follows a strong operational showing in the first six months of the year.
AREIT generated ₱7.7 billion in total revenue during the first half of 2026, while earnings before interest, taxes, depreciation, and amortization rose 34% to ₱5.8 billion. Net income, excluding fair-value adjustments on investment properties, surged 36 percent to ₱5.8 billion, driven by full-period contributions from acquisitions made over the past two years alongside steady occupancy across its legacy portfolio.
Assets under management reached ₱159.4 billion during the period, spanning commercial office towers, shopping centers, hotels, and industrial sites.
The board approved a second-quarter cash dividend of ₱0.63 per share, payable on Sept. 9, 2026, to stockholders of record as of Aug. 25, 2026.
The company previously received regulatory approval from the Securities and Exchange Commission on June 26, 2026, for an earlier asset swap involving Ayala Land and Summerhill Commercial Ventures Corp. (James A. Loyola)

Related Tags

AREIT Inc. Ayala Land Inc. New World Hotel Makati Fairmont Raffles Hotel Makati
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