AREIT approves acquisition of The 30th in Pasig

AREIT Inc.’s (AREIT) board of directors approved the acquisition of, a commercial development from its Sponsor, Ayala Land Inc. (ALI) for a purchase price of P5.1 billion, vat-inclusive. The 30th is a 76,000-square meter prime commercial development along Meralco Avenue in Pasig City.  

The development was completed in 2017 and the office is fully occupied predominantly by BPOs. The building also has a retail podium operated by ALI, which the latter will lease from AREIT.  

The planned acquisition of The 30th will allow AREIT to increase its total portfolio of assets from 170 thousand to 246,000 square meters of gross leasable area. As the company intends to fully fund this acquisition through debt, this will have an accretive effect and increase its projected dividends.  

The 30th in Meralco Ave., Pasig City

Meanwhile, the board of AREIT also approved to raise up to P6.4 billion for the purpose of financing future asset acquisitions. AREIT currently has no debt and under the Philippine REIT law, Reits are allowed to leverage up to 35 percent of the total deposited property. It was given a triple-A credit rating by PhilRatings. The acquisition of the building is targeted to be completed within the first quarter of 2021.   

“We are very excited about the growth prospects for AREIT, starting with the recently acquired Cebu building and now with another acquisition of prime commercial development in Pasig City.  This demonstrates AREIT’s ability to expand its portfolio, add value to its shareholders, while its Sponsor Ayala Land reinvests capital for new developments in our country,” says AREIT Inc. president and CEO Carol Mills.