In an effort to improve the capacity to produce revenue AREIT, Inc. has bought 9.8 hectares of property owned by Technopark Assets, Inc. (TLI).
In a Wednesday regulatory filing the firm reported that it has acquired TLI land which is comprised of four parcels of land and is leased for the next seven years by Integrated Micro-Electronics Inc. (IMI).
The land was acquired with a sales certificate of P1.1 billion, including VAT, at AREIT said it is located in Laguna Technopark.
“Acquisition of such a property would contribute directly to income for AREIT beginning this month, contributing to the revenue produced by established buildings of the business,” said the divulgation.
“It would boost its shareholders’ spread sales, prove AREIT’s ability to produce consistent and growing dividends, and increase its capital appreciation capacity,” he said.
Laguna Technopark is an industrial area spanning 471 hectares according to the disclosure. It is operated by AyalaLand Logistics Holdings Corp., a subsidiary of Ayala Property, Inc. Covers parts of the Biñan and Santa Rosa in Laguna.
AREIT said its portfolio would hit 344,000 square metres, more than the present figure of 171,000 skm, along with its purchase of The 30th in Pasig last October. It also positions the overall valuation of the company’s property at P37 billion.
“In addition to providing investment with meaning, AREIT assets facilitate the creation of employment for Philippines. AREIT’s office buildings are host to leading local and multinational businesses, hiring over fifty thousand philippine employees. These include the newly-acquired land with more than five thousand jobs,” said Carol Torres-Mills, President and CEO of AREIT.
AREIT had its initial public offering (IPO) of 12.33 billion PM in August of last year, which represented the first REIT (Immobilial Investment Trust) list in the world. According to the REIT rules, AREIT shall, within one year of its IPO, reinvest its earnings from its offers in the Philippines.
Stock exchange shares in AREIT decreased 0.17 percent or five cents on Wednesday.