Ayala Land Inc.’s real estate investment trust company AREIT Inc. is gearing for growth and expansion following the approval of the the increase in the company’s authorized capital stock to P29.5 from P11.7 billion along with the infusion of P15.5 billion worth of ten commercial properties in AREIT’s leasing portfolio.
AREIT President and CEO, Carol T. Mills notes 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,” Mills said.
The assets come from Ayala Land in exchange for 483 million shares.
During AREIT’s first annual stockholders’ meeting yesterday, stockholders approved the plan.
According to the growth blueprint of AREIT, ALI and its subsidiaries, Westview Commercial Ventures Corp. and Glensworth Development Inc, will infuse ten properties into AREIT’s leasing portfolio.
This would boost AREIT’s gross leasable area to 549,000 square meters from 344,000 sqm.
ALI will own approximately 66 percent of AREIT’s total outstanding shares, demonstrating its strong support as the sponsor, while adhering to the prescribed minimum public ownership requirements under Philippine laws.
With the addition of the new assets, AREIT’s deposited property value will reach P52 billion, further increasing AREIT’s cashflows which will result into higher distributable income for its shareholders.
The properties 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, which have a 98 percent average occupancy rates, are strategically located within Ayala Land developments in key growth centers across the country and will diversify AREIT’s geographic reach and tenant base.
In the same stockholders meeting, AREIT elected a new member to its board Mariana Zobel de Ayala, daughter of Ayala Corp. chairman Jaime Augusto Zobel de Ayala.
She will assume the position as soon as the Securities and Exchange Commission approves the amendment of the company’s Articles of Incorporation.
AREIT has secured approval to increase the number its directors to eight from seven.
REITs allow Filipinos to partake in the income and growth of commercial real estate granting greater inclusivity in the nation’s property market.