SEC approves P15.46 B AREIT, ALI asset-for-equity swap – Manila Bulletin

The Securities and Exchange Commission has approved the P15.46 billion stock-for-asset swap between AREIT Inc. (AREIT), the pioneer real estate investment trust (REIT) in the Philippines, and its sponsor company Ayala Land Inc.

In a statement to the Philippine Stock Exchange, AREIT said the SEC has approved the registration of Ayala Land, Inc (ALI) and its subsidiaries, Westview Commercial Ventures Corp. and Glensworth Development, Inc., on 483.25 million AREIT shares in exchange for its identified properties.

In line with this, on October 7, 2021, the parties have made an amendment to Section 4.2 of the Deed of Exchange, so that the recognition of income from the new assets will accrue to AREIT from October 1, 2021 instead of November 1. 1, 2021.

This will allow shareholders to participate in the contribution of the new assets from the fourth quarter of the year, according to AREIT.

Pending approval, AREIT announced its third quarter dividends on September 22, 2021 (P0.44 per share to registered shareholders as of October 6, 2021), ahead of the regular quarterly dividend declaration to give shareholders a fair share of the performance of the company. Company for the entire third quarter, prior to raising its common stock in exchange for the new assets.

The new assets are expected to contribute significantly to earnings in the following periods, increasing the potential dividend per share for AREIT shareholders.

On March 16, 2021, the company’s board of directors approved the increase in the share capital of AREIT from P11.74 billion to P29.5 billion and the subscription of ALI and its subsidiaries for 483.25 million primary common shares of AREIT exchange for identified commercial real estate valued at P15.46 billion.

AREIT’s outstanding common shares will increase to 1.51 billion from 1.03 billion, with ALI holding approximately 66 percent of the total shares while adhering to the minimum public ownership requirements prescribed under Philippine laws.

The company will apply within the year for the issuance of the Certificate authorizing the registration of the Bureau of Internal Revenue’s new assets and the listing of the shares in favor of ALI and its subsidiaries.

With the closing of the transaction, the gross lettable area (GLA) of AREIT amounts to 549 thousand square meters. At the closing price of P39.80 on October 8, 2021, the company’s total market capitalization is P60 billion from P27 billion during its IPO last year.