The Ayala Land, Inc. (ALI) will soon offer the 1st real estate investment trust (REIT) in the Philippines.
Respectively, ALI applied to the Securities and Exchange Commission (SEC) on Friday about its future REIT plan through its subsidiary, AREIT . The plan included its offer to the public up to 478,639,700 shares at P30.05 each.
According to the report of Business World, the offer is composed of 47,864,000 new common shares and 430,775,700 existing common shares, with an over-allotment option of up to 23,932,000 shares.
Once the SEC and the Philippine Stock Exchange, Inc. approve the ALI’s application being the 1st REIT in the Philippines, AREIT will have its initial public offering.
“Through this initial capital market transaction, ALI hopes to pave the way for the development of a REIT market in the country, bringing another milestone to the Philippine stock market,” the company stated.
Based on the prospectus of AREIT, there are three commercial buildings: the 24-storey Solaris One, the mixed-use development Ayala North Exchange, and the five-storey McKinley Exchange, all located in Makati City that are included in the REIT plan.
“The company seeded AREIT, Inc. with Grade A office assets located in Makati CBD (central business district) and is expected to expand its portfolio with new acquisitions in the future,” ALI said.
“Proceeds from the offer will be disbursed by the end of 2020, as required by the REIT guidelines, and divided into P1.22 billion for future investments in real estate (90% of total) and P136 million for general corporate purposes (10%),” ALI added to it statement.
Reference: ALI applies for PHL’s 1st REIT